EU funds spark row: Poland and Germany clash over 6.6 billion euro defense money

A significant dispute has erupted within the European Union over the allocation of 6.6 billion euros in European funds, pitting Poland against Germany. This substantial sum, previously held up by a Hungarian veto, is now being released, but disagreements over its intended use have intensified.

Poland, under Prime Minister Donald Tusk, argues that the money should be used for its original purpose: reimbursing member states that provided their own weapons to Ukraine at the beginning of the conflict. Poland claims it is owed approximately 450 million euros. This stance is rooted in the initial design of the European Peace Facility (EPF), which was established to finance military support worldwide and was intended to partially (40%) compensate EU countries for arms and equipment supplied to Ukraine.

Germany, led by Chancellor Friedrich Merz, however, advocates for the funds to be directed entirely towards acquiring new weapons and providing training for Ukraine. This position has led to a deadlock, with a compromise proposal from EU foreign policy chief Kaja Kallas, suggesting a 10% reimbursement for member states, being firmly rejected by Poland.

The conflict highlights differing priorities and interpretations of the EPF's mandate. Poland's Deputy Minister of Defence, Cezary Tomczyk, accused Brussels of attempting to "change the rules during the game." The EPF has been a critical tool for supporting Ukraine, with EU member states allocating up to 43 billion euros to it. While the EU has committed to reimbursing member states, current budget constraints mean not all claims can be met, adding another layer of complexity to the ongoing debate.