EU capitals challenge "Made in Europe" rules for Ukraine arms funding

Leaders of nine European Union member states have urged the European Commission to swiftly allow funds from the bloc's €90 billion Ukraine Support Loan to be used to purchase American-made weapons for Kyiv. The request comes amid an intensifying debate in Brussels over the EU's "Made in Europe" principle, which seeks to ensure that European defence funding primarily benefits the bloc's own defence industry.

In a joint letter published on July 7, the defence ministers of Poland, Germany, Estonia, Lithuania, Latvia, Finland, Sweden, Denmark and the Netherlands argued that Ukraine faces immediate military capability gaps in areas where "no EU alternatives" exist or where European manufacturers cannot deliver equipment quickly enough, as reported by Polish media.

"Ukraine's urgent needs should be front and centre," the ministers wrote, specifically highlighting the need for systems such as PAC-3 missiles used by Patriot air defence batteries.

The ministers called on the European Commission to approve the relevant purchases without waiting for further assessments or the completion of a broader review of Europe's defence industrial capacity.

"We continue to stress that the swift approval of product schedules is crucial, including through the pragmatic use of the derogation for the purchase of material produced by third countries," the letter said.

The proposal, however, has exposed divisions within the EU over whether European taxpayer funds should be used to buy weapons manufactured outside the bloc.

"This is European money and we want to buy US weapons? That makes no sense," one EU official told TVP World.

"We are in favour of a European preference and, by the way, the US don't even have enough Patriots for their own needs," the official added.

The dispute reflects a broader debate over Europe's rearmament strategy. While NATO has encouraged closer transatlantic defence industrial cooperation, the European Commission has sought to use increased defence spending to strengthen the EU's own manufacturing base.

Speaking at this week's NATO summit in Ankara, Secretary General Mark Rutte said "the world will see industries from North America and Europe working hand-in-hand," describing the approach as "Made in NATO."

Current EU defence financing rules, however, limit the purchase of non-European equipment. The bloc's flagship €150 billion SAFE loans-for-weapons program caps non-EU content at 35% of a weapon's value, while the €90 billion Ukraine Support Loan also restricts Kyiv's ability to procure military equipment produced outside the EU.

The latest appeal highlights the growing tension between supporting Europe's long-term defense industrial ambitions and addressing Ukraine's immediate battlefield requirements.

By Nazrin Sadigova