A recently published legal opinion suggests that Germany could finance civilian aid to Ukraine more easily through loans than previously assumed. This finding comes from a 26-page investigation conducted by the international law firm Dentons, commissioned by the strategic debate forum “Global Impact Deutschland.”
According to the experts, the basic law permits funding repairs to destroyed power grids, the reconstruction of hospitals, and humanitarian assistance using additional debt. Therefore, establishing a departmental exception to the overall debt limit for Ukrainian civil aid would be constitutional.
The report, dated October 29th, concludes that expanding financing options would not require a new amendment to the Basic Law. This argument builds upon the debt brake reform of March 2025, which allows certain defense-related expenditures exceeding one percent of economic output to be exempt from regular borrowing limits. The Basic Law explicitly names supporting states that are illegally attacked under international law.
The legal experts assert that this exception is not limited only to military aid. What is decisive is whether the expenses are directly linked to the consequences of the Russian invasion. However, general development projects without this connection would not qualify. This interpretation differs from that of the Federal Finance Ministry, which asserted in September that development ministry expenditures would not fall under this exception.
Dentons counters that the determining factor is not solely which ministry is involved, but the purpose of the aid. Additionally, the experts criticize a stipulation within the 2027 budget draft, which requires certain aid to be fully classified as defense spending according to NATO criteria to utilize the exception. They argue that this limitation is not mandated by the Basic Law and could potentially be changed by the Bundestag.
