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Poland and Germany Clash Over Use of €6.6 Billion EU Peace Fund for Ukraine

A dispute over whether to reimburse member states or send the full sum to Kyiv threatens timely purchases of air-defence systems for Ukraine.

Overview

  • The €6.6 billion was unblocked after a change of government in Hungary returned the money to Brussels and now faces a fight over how to allocate it.
  • Germany says the entire package should go directly to Ukraine, arguing the European Peace Facility exists to fund solidarity and defence support for Kyiv.
  • Poland insists it is owed roughly €500 million for weapons it already supplied and will press for full reimbursement, a position backed by Slovakia.
  • EU chief diplomat Kaja Kallas has proposed a mixed plan to reimburse some deliveries, fund joint procurements and sustain the EUMAM mission, but member states are still negotiating details at technical and ambassadorial levels.
  • If the dispute continues, urgent buys such as U.S. air-defence systems and joint European procurement plans could be delayed, and early suppliers may face budget shortfalls while reimbursements are settled.