(MENAFN) The Financial Times has reported that internal disagreements among European Union member states over the functioning of the European Peace Facility (EPF) could potentially lead to delays in the delivery of weapons to Ukraine. The primary source of contention lies in Germany's desire to reduce its financial contribution to the fund, which has predominantly supported military efforts in Kiev. According to the report, Berlin is pushing for its unilateral contributions to Ukraine to be considered separately, citing the need to account for its individual efforts.
The backdrop to this dispute includes a November decision by Germany's Constitutional Court, which prohibited Chancellor Olaf Scholz's government from repurposing unused Covid-19 funds. The subsequent budget negotiations for 2024 involved significant cuts to operational costs across various departments and reductions in specific climate-related subsidies.
The Financial Times, citing anonymous officials, claims that German authorities are advocating for a departure from the EPF's existing reimbursement model. Instead, they propose that unilateral aid provided to Ukraine by individual member states should be credited against their respective shares in the European Union war chest. This proposed change has reportedly led to Germany withholding a proposed EUR5 billion (USD5.4 billion) injection to the EPF, which has already been depleted due to reimbursements to member states for weapons shipped to Ukraine.
Chancellor Scholz is said to have emphasized the importance of considering suggestions from member states during a recent summit, as reported by the Financial Times. The ongoing dispute is now hindering progress on the proposed injection, raising concerns about potential delays in aid distribution to Ukraine.
The unnamed sources cited in the report suggest that member states are aiming to reach a compromise by the end of the month. However, the disagreement underscores the complexity of coordinating financial contributions and operational aspects within the European Union, particularly concerning matters as critical as support for Ukraine during the ongoing conflict.
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