Bundeswehr’s special fund on Friday in the Bundestag | News

Author: Andreas Kissler

BERLIN (Dow Jones) – Bundestag wants this week to create planned special fund worth more than EUR 100 billion for armed forces decision on. This is due to the updated agenda of the Parliament. In connection with the above, at A two-thirds majority of the members is required for the final roll-call vote. At 2:45 pm, the Federal Armed Forces Special Assets Act itself is on the agenda, and a roll-call vote is also scheduled here. The results should be announced from 4:45 PM. The Federal Council could then make a decision on the draft on Friday.

After the coalition and the Union agree on a joint application, approval of the project is considered certain. The Bundestag’s Budget Committee approved plans on Wednesday evening, Bundestag informed. The purpose of the special fund is therefore to strengthen allied and defense capabilities by filling the gaps in the Bundeswehr’s capabilities. There is also a special fund business plan that explains the planned procurement projects in detail.

The committee adopted changes referring to the coalition agreement with the EU. Loans should not be included in the debt rule referred to in Art. 115 of the Basic Law, to which a new paragraph 87a of the Basic Law should be added. It should now be clarified in the Basic Law that “to strengthen the alliance and defense capabilities” a special fund may be established “for the Bundeswehr”. The original draft lacked the “for the Bundeswehr” supplement.

Skill gaps must be closed

According to the Bundestag, it is already clear from the Special Assets Act itself that the purpose of special assets is to “strengthen allied and defense capabilities and close the Bundeswehr’s capacity gap from 2022, so that German contribution to the relevant NATO can also guarantee the capability targets. “.

The resources from a special fund were to be used to finance significant hardware projects for the Bundeswehr, especially complex ones, lasting several years. Moreover, with the help of a special fund, “on a multi-year average, for a maximum of five years, 2% of gross domestic product should be made available based on the government’s current forecasts of defense spending according to NATO criteria.” . This means that the link between Special Fund expenditure and NATO’s defense spending objective is explicitly stated in the text of the law.

In addition, the budget committee should approve all procurement and development project contracts, as well as operator contracts that exceed a financial value of € 25 million. The new body, made up of committee members, is also to be informed by the Ministry of Defense of all matters related to the special fund. According to the draft, repayment of loans should start no later than 1 January 2031 and take place “within a reasonable period”.

The Air Force receives the most resources

According to the economic plan, the largest item of expenditure in the coming years will be purchases in the area of ​​the air force. According to the information, approximately EUR 33.4 billion has been allocated for this purpose. Accordingly, the development and purchase of the Eurofighter ECR and the purchase of the F-35 as successor to the Tornado are listed as projects. According to the economic plan, EUR 16.6 billion will be allocated to the “Land Contract Dimension” and EUR 8.8 billion to the sea area. EUR 20.8 billion is to be spent on procurement in management /digitization omitted.

Total appropriations for expenditure and commitments amount to EUR 82 billion. According to the business plan, some projects are already reflected in the budget itself. “They will be partially expanded and transferred to a special fund from fiscal year 2023,” he says.

Contact the author: andreas.kissler@wsj.com

DJG / ank / mgo

(END) Dow Jones Newswires

June 02 2022 11:26 ET (3:26 PM GMT)

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