The finance ministers and central bank governors of the leading industrialized countries met for two days on the Petersberg near Bonn. The G-7 meeting was hosted by two novices: Federal Finance Minister Christian Lindner, in office since December, and Bundesbank President Joachim Nagel, who succeeded Jens Weidmann at the beginning of the year.
Both were satisfied with their performance at the final press conference. “For once, we can praise ourselves,” said Nagel. Lindner added briefly and concisely: “It went well.”
Whether it really went that well is debatable. One of the primary goals of the meeting was to provide Ukraine with sufficient short-term funds to keep the state apparatus running despite the war. Ukraine needs the money, among other things, to pay pensions and the salaries of state employees.
In the run-up there was talk of a magnitude of 15 billion dollars, sometimes also of 15 billion euros that will be needed for the next three months – five billion per month. The result was only 9.5 billion dollars provided by the G-7 countries.
Lindner did not want that to be understood as a failure. “Ukraine’s solvency is secured,” said Lindner. Support Ukraine quickly and comprehensively. He did not say how long the money should last. Further short-term collection campaigns, for example at the G-7 summit of heads of state and government in Elmau at the end of June, are at least not necessary.
Lindner even went so far as to say that the original goal on the Petersberg was exceeded. Instead of $9.5 billion, Lindner spoke of $19.8 billion, which is the total amount that was mobilized for Ukraine.
However, not at the G-7 meeting of finance ministers. Because the higher amount only comes about if you add the funds from the International Monetary Fund (IMF) of $10.3 billion that had already been pledged before the summit and some of which have already been paid out.
Strictly speaking, Lindner did not achieve much in terms of aid to Ukraine in the two days of the summit. Grants, i.e. money that Ukraine does not have to pay back, are only available from the United States and Germany themselves.
The United States is contributing $7.5 billion, which has been known for a few days, Germany is giving $1 billion. In contrast, the other five countries – France, Great Britain, Italy, Japan and Canada – were only willing to provide Ukraine with loans and guarantees to secure liquidity. Altogether another billion dollars.
The fact that there was constant confusion over the days on the Petersberg as to whether it was about euros or dollars is negligible. With regard to the German contribution, Lindner spoke on Thursday of a billion euros that is now available, on Friday it was a billion dollars.
Strictly speaking, that’s a little less, namely 950 million euros. The amount has already been incorporated into the federal budget by the Budget Committee. This succeeded without the new debt increasing again.
Lindner was not deterred by critical inquiries about the numbers. It is important that the money has been collected and is now being provided in addition to humanitarian or military support. What was Lindner’s own assessment of his first summit presidency? “Went well.”
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