The German Parliament's Budget Committee has approved an additional €3 billion in military aid for Ukraine, a decision made during the last session of the current legislative term.

This financial commitment follows the adoption of a constitutional reform allowing Germany to incur unlimited debt for defense purposes.

The approval was confirmed by the office of Bettina Hagedorn, the vice-chair of the Budget Committee.

This latest allocation supplements approximately €4 billion that had already been budgeted for 2025. In addition, the Budget Committee has allowed the government to secure guarantees for an estimated €8.3 billion to be made available between 2026 and 2029, facilitating the execution of necessary supply contracts at this juncture.

The funding approvals were made prior to the establishment of the new Bundestag on March 25, following the conservative block led by Friedrich Merz's electoral victory on February 23. The allocations had previously been a point of contention within the coalition government of Social Democrats and Greens, led by outgoing Chancellor Olaf Scholz, who had imposed a delay in authorization.

Scholz had argued that ensuring financial support for military aid to Ukraine was crucial to avoid cuts in other areas.

Defense Minister Boris Pistorius and Foreign Minister Annalena Baerbock of the Social Democrats have been key advocates for this additional military assistance package, calling for it since November 2022, in light of the fact that the allocated €4 billion for 2025 was already fully committed.

Reports indicate that Scholz's veto on releasing these funds was lifted after the Bundesrat, Germany's upper house of parliament, endorsed the constitutional reform.

This reform allows defense spending to be exempt from the country's debt brake, which traditionally caps the state’s borrowing at 0.35% of annual GDP. Consequently, military aid to Ukraine can now be financed through loans without necessitating reductions in other budgetary areas.