France and Germany argue over rules for using €90 billion EU loan for Ukraine, - Politico
There is ongoing debate in European Union countries regarding the terms of a joint loan to Ukraine in the amount of €90 billion, particularly regarding what weapons these funds can be spent on.
This information comes from Censor.NET, with reference to Politico.
As noted, some European countries, led by France, want Ukraine to purchase weapons primarily from EU defence contractors.
A group of 19 other countries, including Germany and the Netherlands, proposes that Kyiv also be allowed to purchase the necessary systems from outside the EU, if necessary.
In addition, Berlin proposes to link member states' borrowing costs to the level of bilateral support they have already provided to Ukraine. This means that the states that have provided the most assistance will be able to benefit from the distribution of the financial burden.
Germany remains the largest donor to Ukraine among EU countries: since 2022, it has allocated €19.7 billion in military aid. France has provided €5.9 billion and Italy €1.7 billion.
Sources note that there is still no agreement among member states on Berlin's proposal. Separate discussions are underway on what weapons the funds can be spent on. Restrictions on the purchase of key weapons, such as air defence systems, could hamper Ukraine's military efforts.
At the same time, most countries support the possibility of including British-made weapons in contracts financed by EU loans. According to the Commission's initial proposal, Ukraine can already purchase certain weapons from the US if they are not available in the EU.
The issues are to be discussed by the ambassadors of the countries at a meeting on 28 January.
What preceded it?
- Earlier it was reported that the European Council agreed to provide Ukraine with a loan of €90 billion for 2026–2027 based on EU borrowings on capital markets secured by EU budget reserves.
On 14 January, the European Commission approved a package of legislative proposals - that will allow Ukraine to receive a €90 billion loan from the EU to cover its financial and military needs in 2026-2027.
- On 21 January, the European Parliament supported the proposal for an EU Council decision allowing for the activation of enhanced cooperation to establish a €90 billion Loan for Ukraine for 2026-2027.
