Germany to plough 100 billion euros in defence investments

Germany will invest 100 billion euros ($112 billion) in military equipment this year and plough more than two percent of its economic output in defence annually, Chancellor Olaf Scholz said Sunday, as Russia’s invasion of Ukraine prompts Europe’s biggest economy to switch gears on its military policy.

“We will set up a special ‘Bundeswehr’ fund,” he told parliament in a special sitting, adding that the budget will be used for investments and armaments projects.

“We will from now on — year after year — invest more than two percent of gross domestic product in our defence,” he said, calling for the special army fund should be written into the constitution.

Scholz also said that the world stood in a “new era” with Russia’s invasion of Ukraine, noting that the question facing Western allies was whether they can muster enough power to set limits for “warmongers” like Vladimir Putin.

“In essence, it’s a question of whether might can break right,” he said in a speech at a special parliamentary sitting.

He said he was still open for talks with Russia, but warned that Moscow had to be ready for “real dialogue.”

“We will not refuse to engage in talks with Russia. Even in this extreme situation, it is the task of diplomacy to keep channels of communication open,” he told a special parliamentary sitting.

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“Anything else would be irresponsible.”

As the screws tighten on Moscow over its invasion of Ukraine, Germany’s Transport Ministry announced that it would impose a three-month ban on all Russian flights from its airspace from 14h00 GMT on Sunday

“In a Notice to Air Missions, the transport ministry has imposed a flight ban for Russian aircraft and aircraft operators in and over German airspace,” said the ministry, adding that order was valid for three months.

Only humanitarian flights will be exempt.