This includes a 110 billion euro injection of funds to defence and the announced intention to raise German defence spending above two percent of GDP, as demanded by successive US administrations. This will address the progressive running down of Germany's military during the chancellorship of Angela Merkel, to the point where, according to the Chief of the Army Lt. Gen. Alfons Mais: "... the Bundeswehr, the army that I am allowed to lead, is more or less stripped bare...I am pissed off!"
After initial hesitation, Germany has also decided to send signficant armaments to the Ukrainians, reversing long standing policy. In this Germany has been joined by even neutral states such as Sweden, Switzerland and Finland.
On energy policy, the Nord Stream 2 pipeline has been suspended, and steps are being taken to secure alternative supplies of fossil fuels, including building two new LNG terminals. The Green energy minister Robert Habeck announced the extension of the life-span of the remaining nuclear power stations.
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- The measures represent a complete reversal of Germany's post-Cold War Russia policy β which focused on pursuing economic ties rather than confrontation with Moscow β and mark a definitive end to the era of former Chancellor Angela Merkel.
- "We are living through a watershed era. And that means that the world afterwards will no longer the same as the world before. The core question is whether power is allowed to prevail over the law. Will we allow Putin to turn the clock back to the 19th century and the age of great powers? Or can we muster the strength to keep warmongers like Putin in check. That requires strength of our own. Yes, we fully intend to secure our freedom, our democracy and our prosperity." β German Chancellor Olaf Scholz, Bundestag, February 27, 2022.
- The significance of the German U-turn cannot be overstated: Germany will become the biggest spender on defense in Europe.
- In a major policy reversal, the German government has also decided to suspend technical certification of the controversial Nord Stream 2 pipeline, which would double shipments of Russian natural gas to Germany by transporting the gas under the Baltic Sea.
- "Olaf Scholz is changing decades of German foreign policy in a single speech. Russia went too far and now Germany is waking up. Incredible." β Marcel Dirsus, German political scientist.
- "I have to say I don't recognize Europe as it responds to Putin's gangsterism against #Ukraine... all of a sudden I see the Continent grow a spine. Way to go!" β Andrew Michta, veteran transatlantic security analyst.