Changes attribution to minister, adds minister quote in paragraphs 6-7

By Holger Hansen

BERLIN, March 21 (Reuters) - Germany's budget committee cleared the way on Friday for another 3 billion euros ($3.25 billion) in military aid for Ukraine, after chancellor-in-waiting Friedrich Merz pushed through reforms to ramp up investment in defence.

Both houses of parliament passed plans this week by Merz's conservatives and the Social Democrats, who are in talks to form the next German government, that lift a long-held cap on debt.

The move to shore up support for Ukraine was earlier reported by Reuters and confirmed in a statement by Foreign Minister Annalena Baerbock in Chancellor Olaf Scholz's outgoing coalition government.

The 3 billion euros include 2.547 billion earmarked by the finance ministry for Ukraine this year, topped up by other contributions, including a reimbursement from the European Peace Facility.

The finance ministry also plans to authorise commitments of 8.252 billion euros for military aid to Ukraine for the years 2026 to 2029, bringing the total to more than 11 billion euros.

It was "high time" for the parliamentary committee to clear the use of the funds and Germany was now setting the pace for Europe's support of Ukraine, Foreign Minister Baerbock said in a statement.

"Ukraine's military situation has become increasingly difficult over the last few months," she added.

European Union countries, whose leaders met to discuss Ukraine aid this week, are under increasing pressure to show their commitment to Ukraine in its war with Russia as uncertainty grows about the future of U.S. security guarantees under President Donald Trump.

($1 = 0.9232 euros)

(Writing by Rachel More and Ludwig Burger, Editing by Friederike Heine and Susan Fenton)

((ludwig.burger@thomsonreuters.com;))