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World: Germany And The USA Ready To Cut Aid To Ukraine!

Thu 10 Oct 2024 ▪ 5 min read ▪ by Evans S.
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The future of Western aid to Ukraine is currently hanging in the balance, faced with a series of uncertainties. On one hand, the Kiel Institute, a well-known German research institute, warns of a potential drastic reduction in financial support should Donald Trump return to the White House in 2025. On the other hand, Germany has announced its intention to halve its military contributions. In such a context, Ukraine could find itself deprived of valuable allies. What are the consequences for the geopolitical balance, and how will Ukraine be able to meet this challenge?

Ukraine

A Possible Return of Trump: A Shock for American Aid to Ukraine

The 2024 American presidential elections could mark a turning point for Ukraine. If Donald Trump, who wants to make Bitcoin an economic weapon, regains power, the military and financial aid from the United States to Ukraine could take a major hit.

Indeed, the former president has always shown a certain skepticism towards international commitments, and Ukraine is no exception.

His intentions to reduce, or even cease, military and financial aid have never been hidden. Such a policy could hinder the American Congress’s plans to support, blocking any aid initiative to Kiev.

The impact of this decision would be considerable. With nearly 100.2 billion euros in promised bilateral aid, the United States ranks among the top contributors to Ukraine worldwide.

This aid is not limited to promises; in fact, 87% of the funds allocated by the United States are already on the ground in the form of weapons and military equipment. A reduction in this contribution would therefore mean an immediate loss of strategic resources for Ukraine.

This potential withdrawal of American support also raises the question of Western alliances. If America pulls back, other countries around the world might hesitate to continue their aid. Such a change could also influence the perception of other allies, notably European ones, who are already under pressure to reduce their aid budgets.

Germany Shows Its Hand

Across the Atlantic, Germany follows a similar path. The German government recently revealed its intentions to halve the funds allocated to Ukraine starting in 2025.

If Germany indeed decides to cut its military aid, the repercussions will quickly be felt, not only for Ukraine but also for the rest of Europe.

By partially withdrawing, Germany sends a strong signal: Europe might start to refocus on its own priorities at the expense of international commitments.

The reduction envisaged by Berlin could prompt other European countries to review their own contributions.

Moreover, some European donors have already expressed hesitations about the sustainability of their support. The figures speak for themselves: military and financial aid, which would amount to 59 and 54 billion euros, could fall to 29 and 27 billion respectively, a nearly fifty percent drop, if Western supports follow Germany’s lead.

This announcement comes as the Ukrainian president Volodymyr Zelensky is embarking on a European tour to try to rally renewed support. After a meeting with the British Prime Minister, he will meet with French, Italian, and German leaders. His message is clear: without continued international support, Ukraine could lose the momentum necessary to pursue its military and diplomatic actions. As the world closely follows this situation, European support remains crucial for Kiev.

In the face of these challenges, alternative solutions are being considered. The European Union, for example, has announced a potential loan of 35 billion euros, financed by the profits from frozen Russian assets. Although this initiative may offer temporary relief, it cannot compensate for the reductions in traditional bilateral aid. Pietro Bomprezzi, head of the Kiel Institute team, highlights that these funds remain stopgaps, temporary solutions that won’t meet Ukraine’s long-term needs. Meanwhile, China is collapsing.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

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