Germany has run out of money to assist Ukraine

The German position regarding the EU military support fund might result in delays in providing weapons to Ukraine, as reported by sources cited in the Financial Times.

The European Peace Facility, which previously had a budget of 12 billion euros, has now been depleted. Discussions are ongoing about replenishing it with an additional 5 billion euros. Member states contribute to this fund based on the size of their economies and are later reimbursed for the weapons they supply to Ukraine. According to sources, Brussels is advocating a “pay first, then get reimbursed” approach. However, Germany and other countries are pushing to scrap the reimbursement model, arguing that it is unnecessary.

Berlin is currently grappling with significant financial limitations due to a ruling by the Constitutional Court. Consequently, there are demands for the cost of weapons supplied to Ukraine bilaterally to be factored into Germany’s contribution to the fund. Smaller nations argue that this adjustment would drastically reduce the fund’s size. Simultaneously, concerns have been raised regarding fairness and self-interest in fund distribution. Major contributors assert that smaller countries, such as the Baltic states, have received substantial reimbursements from the EPF for supplying outdated Soviet weaponry to Ukraine. These funds have been used to upgrade their own arsenals.