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Germany to halve military aid for Ukraine despite possible Trump White House
By Maria Martinez and Holger Hansen
BERLIN (Reuters) -Germany plans to halve its military aid to Ukraine next year, despite concerns that U.S. support for Kyiv could potentially diminish if Republican candidate Donald Trump returns to the White House.
German aid to Ukraine will be cut to 4 billion euros ($4.35 billion) in 2025 from around 8 billion euros in 2024, according to a draft of the 2025 budget seen by Reuters.
Germany hopes Ukraine will be able to meet the bulk of its military needs with the $50 billion in loans from the proceeds of frozen Russian assets approved by the Group of Seven, and that funds earmarked for armaments will not be fully used.
“Ukraine’s financing is secured for the foreseeable future thanks to European instruments and the G7 loans,” German Finance Minister Christian Lindner said on Wednesday at a news conference.
Washington pushed to “front load” the loans to give Ukraine a big lump sum now.
Officials say EU leaders agreed to the idea in part because it reduces the chance of Ukraine being short of funds if Trump returns to the White House.
Alarm (NASDAQ:) bells rang across Europe this week after Trump picked Senator J.D. Vance, who opposes military aid for Ukraine and warned Europe will have to rely less on the United States to defend the continent, as his candidate for vice president.
Trump sparked fierce criticism from Western officials for suggesting he would not protect countries that failed to meet the transatlantic military alliance’s defence spending targets and would even encourage Russia to attack them.
Germany has faced criticism for repeatedly missing a NATO target of spending 2% of its economic output on defence.
DEPLETED MILITARY STOCKS
The stocks of Germany’s armed forces, already run down by decades of underinvestment, have been further depleted by arms supplies to Kyiv.
So far, Berlin has donated three Patriot air defence units to Kyiv, more than any other country, bringing down the number of Patriot systems in Germany to nine.
Germany’s fractious coalition of left-leaning Social Democrats, pro-business liberals and ecologist Greens has struggled to comply with NATO’s spending target due to self-imposed rules that limit the amount of state borrowing they can take on.
Although military aid to Ukraine will be cut, Germany will comply with the NATO target of spending 2% of GDP on defence in 2025, with a total of 75.3 billion euros.
Days after Russia’s 2022 invasion of Ukraine, Chancellor Olaf Scholz announced a “Zeitenwende” – German for historic turning point – with a 100 billion euro special fund to bring the military up to speed.
From this special fund, there will be 22.0 billion euros more for defence, plus 53.3 billion euros in the regular budget, still less than that sought by Defence Minister Boris Pistorius.
The defence budget is set to receive a meagre 1.3 billion euros more than in 2024, far below the 6.7 billion euros requested by Pistorius.
As ever-increasing annual operating costs outpace this rise, the defence ministry is being forced to cut ammunition orders for 2025 by more than half, reduce procurement by 260 million euros and research and development by over 200 million euros.
The budget for 2025 comes with the mid-term financial planning until 2028, the year when the armed forces’ special fund to meet NATO’s minimum spending goals is due to run out and 80 billion will be needed for defence, as noted in the financial plan.
In 2028, there is a gap of 39 billion euros in the regular budget, of which 28 billion euros are needed to comply with the NATO target without the special fund, sources from the finance ministry said.
Decisions on how the hole will be plugged are not likely to be taken until after the 2025 election.
“The 80 billion euros that have been put on display for 2028 simply do not exist,” said Ingo Gaedechens, member of the parliament’s budget committee from the conservative opposition party CDU.
“The coalition is not even trying to cover this up but are openly admitting it.”
($1 = 0.9192 euros)
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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