Germany is discussing the establishment of a fund to enhance defense and provide assistance to Ukraine.

Germany is discussing the establishment of a new fund aimed at increasing military spending and supporting Ukraine in light of rising threats. The authorities are considering several financing options.

This was reported by Bloomberg.

According to sources from the agency, German Chancellor Friedrich Merz has initiated talks with the Social Democrats (SPD) to expedite the approval of a special defense spending package amounting to up to 200 billion euros ($210 billion).

This move is intended to bolster the country's defense capabilities amid Russian aggression, the source stated.

As part of the negotiations, three key options are being considered: the creation of a new fund, the expansion of the existing one by 100 billion euros, or the adaptation of the debt brake to increase defense spending and aid to Ukraine.

These measures aim to bypass strict limitations on state borrowing that hinder the allocation of funds for military needs.

However, any of these decisions will require a supermajority of two-thirds in parliament, complicating the task in a climate of political instability, where fringe parties block such initiatives, Bloomberg reports.

Background. Earlier, Mind reported that Friedrich Merz, the head of the Christian Democratic Union, which won the elections in Germany, stated that Europe could develop an alternative format for its security before the NATO summit in June.