POLITICO: Europe has taken up its favorite pastime – dividing up money

Pic.: Canada – iSideWith

Germany and France clash over buying US arms with €90B loan to Ukraine. A majority of countries oppose Paris’ push to restrict Ukraine’s spending to EU defense firms, POLITICO notes.

Germany and the Netherlands are at odds with France in seeking to ensure Kyiv will be able buy U.S. weapons using the EU’s €90 billion loan to Ukraine.

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

French President Emmanuel Macron is keen to give preferential treatment to EU military companies to strengthen the bloc's defense industry — even if that means Kyiv can't immediately buy what it needs to keep Russian forces at bay.

A majority of countries, led by governments in Berlin and The Hague, respond that Kyiv must have more leeway in how it spends the EU’s financial package to help fund its defense, according to position papers seen by POLITICO.

These frictions are coming to a head after years of debate over whether to include Washington in EU defense purchasing programs. Divisions have only worsened since U.S. President Donald Trump's administration threatened a military takeover of Greenland.

Critics retort France’s push to introduce a strict “Buy European” clause would tie Kyiv’s hands and limit its ability to defend itself against Russia.

While most countries including Germany and the Netherlands support a general "Buy European" clause, only Greece and Cyprus — which currently maintains a neutral stance as it is chairing talks under its rotating presidency of the Council of the EU — are backing the French push to limit the scheme to EU firms, according to multiple diplomats with knowledge of the talks.

Germany broke with France by proposing to open up purchases to defense firms from non-EU countries.

“Germany does not support proposals to limit third country procurement to certain products and is concerned that this would put excessive restrictions on Ukraine to defend itself,” Berlin’s government wrote in a letter sent to EU capitals on Monday and seen by POLITICO.

The Netherlands suggested earmarking at least €15 billion for Ukraine to buy foreign weapons that are not immediately available in Europe.

“The EU’s defence industry is currently either unable to produce equivalent systems or to do so within the required timeframe,” the Dutch government wrote in its letter.

The French counterargument is that Brussels should seek to extract maximum value from its funding to Ukraine.

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