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No cash for Iraq war: Germany

Schroeder
Chancellor Schroeder: "Not prepared to engage in adventures"

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BERLIN, Germany -- Germany will not give a single euro to any war effort in Iraq, its finance minister has declared.

Hans Eichel said Germany's weak economy could not cope with providing any financial assistance to a U.S. strike on Iraq.

Berlin contributed $5.5 billion to U.S.-led efforts during the 1991 Gulf War at a time when it was constitutionally unable to send troops.

That restriction has now been lifted, but the government of Gerhard Schroeder has voiced opposition to a military strike on Baghdad.

Eichel is quoted by Reuters as going one step further by telling Bild newspaper on Monday: "It is quite clear that we will not contribute any financial support for a war against Iraq."

Germany is suffering from unemployment rates of 10 percent and a severe economic downturn.

Eichel said a war could lead to higher security costs for the German government and might also have a negative impact on economic growth, especially if oil prices rise.

"It is in any event a big risk," Eichel said, referring to the possible war that could tear new holes in his budget.

Germany is already one of the biggest contributors to peacekeeping operations in terms of manpower. It has 9,500 of its soldiers on foreign peacekeeping missions and is contributing to anti-terror Enduring Freedom military operations in Afghanistan and in the Horn of Africa.

Schroeder incurred the wrath of U.S. President George W. Bush during the German's re-election campaign in September. The German leader criticised the U.S. government over its policies on Iraq and the war threat.

Relations were described as "poisonous" by the White House at the time, though they have warmed slightly since.

Schroeder has assured Bush last month that Germany would grant fly-over and transit rights for U.S. forces, and was considering a request from Washington to guard U.S. bases in Germany in the event of war.



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