Germany and France diverge on the purchase of American weapons using the €90 billion EU loan for Ukraine - Politico

Germany and the Netherlands disagree with France in their desire to ensure that Ukraine can buy American weapons using the EU's €90 billion credit for Ukraine, Politico reports, writes UNN.

Details

EU countries agreed on financial aid for Ukraine at a summit in December, but capitals will still have to agree on the official terms of this funding after the European Commission's proposal on Wednesday.

"This sets up tense negotiations with Paris, which is leading a rearguard action to prevent the money from flowing to Washington amid a growing rift in the transatlantic alliance," the publication says.

French President Emmanuel Macron is reportedly seeking to give preferential treatment to EU military companies to strengthen the bloc's defense industry, even if it means Ukraine cannot immediately buy what it needs to deter Russian forces.

Most countries, led by governments in Berlin and The Hague, respond that Kyiv should have more freedom in how it spends the EU financial package to fund its defense, according to position papers seen by the publication.

This friction comes to a head after years of debate over whether to include Washington in EU defense procurement programs. The disagreements only intensified after the administration of US President Donald Trump threatened a military takeover of Greenland.

Critics argue that France's desire to introduce a strict "Buy European" clause would tie Ukraine's hands and limit its ability to defend itself against Russia.

"Ukraine also urgently needs equipment produced by third countries, in particular US-made air defense systems and interceptors, ammunition and spare parts for F-16s, and deep-strike capabilities," the Dutch government wrote in a letter to other EU countries, seen by the publication.

While most countries, including Germany and the Netherlands, support a general "Buy European" clause, only Greece and Cyprus - which currently holds a neutral position as it chairs the negotiations within its rotating presidency of the EU Council - support France's desire to limit the scheme to EU firms, according to several diplomats familiar with the negotiations.

EU leaders last month agreed to issue €90 billion in joint debt to support Ukraine after Belgium and others scuttled a separate plan to mobilize frozen Russian state assets.

According to two EU diplomats familiar with the discussions, more than two-thirds of the European Commission's funding is expected to go to military spending, rather than regular budget support.

With only a little time left until the European Commission officially unveils the plan, EU capitals are trying to influence its most sensitive elements, the publication writes.

Germany disagreed with France, proposing to open procurement to defense firms from non-EU countries.

"Germany does not support proposals to restrict procurement of certain goods from third countries and is concerned that this would impose undue restrictions on Ukraine to defend itself," the Berlin government wrote in a letter sent to EU capitals on Monday.

The Netherlands proposed allocating at least €15 billion for Ukraine to buy foreign weapons that are currently unavailable in Europe.

"The EU defense industry is currently not able to produce equivalent systems or do so within the set timeframe," the Dutch government wrote in its letter.

The French counter-argument is that Brussels should aim to get the most out of funding for Ukraine.

Critics say that strengthening Ukraine's defense against Russia should be prioritized over any other goal.

"This is very frustrating. We are losing focus on our goal, and our goal is not to do business," said a third EU diplomat.

Another diplomat said that a potential French veto could be easily overcome, as the proposal could be agreed by a simple majority of member states.

Another point of contention was that the German government, while rejecting the EU preferences sought by France, still proposed giving preferential treatment to firms from countries that had provided the most financial support to Ukraine. This would play into Berlin's hands, as it is one of the country's largest donors, the publication writes.

"Germany asks that the logic of rewarding strong bilateral support (as originally proposed by the European Commission for third countries) also apply to member states," Berlin wrote in the letter.

Diplomats see this as a workaround to incentivize German firms and encourage other countries to increase funding for the war-torn country, the publication writes.

Zelenskyy and Trump may meet next week in Davos - media13.01.26, 14:54 • 1816 views