Berlin: Bloomberg reported on Friday, citing people familiar with the situation, that Germany may use funds intended for the phase-out of coal-fired power plants to aid defence companies in constructing additional production facilities.

The report claims that regional authorities in the various German states and the federal government in Berlin are currently debating the measure. With this change, producers would be able to produce more weapons and ammunition while also adding jobs in the regions most negatively impacted by the switch from coal.

It occurs as Western nations increase their military assistance to Kiev. Last month, Germany promised to give Ukraine Leopard 2 main battle tanks and Marder armoured vehicles.

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This week, Berlin also permitted businesses to move the older Leopard 1 tanks.

The efforts to support Kiev and maintain the Bundeswehr's combat readiness, however, have reportedly been hampered by munitions and equipment shortages. According to parliamentary and defence industry sources cited by Business Insider in October, the army only had enough ammunition for one or two days of fighting.

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Germany restarted several reserve coal-fired plants last year as a result of the ongoing energy crisis. Additionally, the government has extended the use of current plants through the end of March 2024. Berlin made the choices as it looked for ways to save energy during the winter.

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The German Economy Ministry stated in June that the country would continue to be committed to eliminating coal as a source of electricity despite worries about energy supplies resulting from the conflict between Russia and Ukraine.