NewsRescue
According to the Financial Times, disagreements among European Union member states over how the European Peace Facility runs could cause delays in arms shipments to Ukraine.
Germany is apparently looking to lower its part of the money, which has been spent almost solely to military support Kiev. According to the newspaper, Berlin insists that its unilateral payments to Ukraine be taken into consideration.
In November, Germany’s Constitutional Court barred Chancellor Olaf Scholz’s government from repurposing unused Covid-19 funding, and it took Berlin weeks of discussions to reach a budget for 2024. The agreement called for the reduction of several departments’ operational costs as well as the elimination of specific climate subsidies.
In an article on Monday, the Financial Times, citing anonymous officials, alleged that German officials are demanding that the EPF depart from the so-called reimbursement model, and that the aid provided to Kiev unilaterally should be credited against Berlin’s share in the EU war chest.
Until the terms are clarified, Germany is reportedly holding up a proposed €5bn ($5.4) injection to the EPF, which has been considerably depleted after reimbursing several member states for the weapons they shipped to Ukraine.
According to many unidentified sources, Chancellor Scholz stated at a summit last week that member states’ “suggestions” should be considered when restructuring the fund.
Member states reportedly hope to reach an agreement by the end of this month.
Josep Borrell, the EU’s top diplomat, has accused European authorities of lacking a “sense of urgency” in dealing with the matter, despite the fact that the bloc has to “increase our military support to Ukraine.”
The Telegraph made similar assertions in December about Germany’s alleged complaints about the EPF. The publication said at the time that Berlin had given roughly one-quarter of the fund.
The EPF differs from the common EU budget, which is also being used to support Kiev’s finances.
After much internal debate, EU leaders approved a €50 billion ($54 billion) package of economic help for Ukraine last Thursday. Brussels overcame Hungary’s objections, which had been blocking the disbursement of funding for weeks. Prime Minister Viktor Orban commented on the outcome, claiming that Budapest was “blackmailed” into consenting.
To absorb the massive contribution, the bloc will need to adjust its own budget.