France urges Ukraine-loan conditions

France is seeking to prevent Ukraine from using a 90-billion-euro ($105 billion) European Union loan to purchase weapons from the United States, amid escalating tension within the bloc over whether to involve Washington in defense procurement.

Paris is proposing that the weapons-related portion of the loan be spent exclusively within Europe's defense industry, a move opposed by a majority of EU countries.

France's President Emmanuel Macron has long argued that the bloc's support for Ukraine should strengthen the continent's arms manufacturers and boost European defense autonomy.

But Germany and the Netherlands have warned that a Europe-only rule would impede deliveries of key weapons for Kyiv's defense, including US-made Patriot air defense systems, according to papers reviewed by Politico.

The papers claim comparable European systems are either not available or cannot be manufactured quickly enough to meet Ukraine's pressing demands.

"Germany does not support proposals to limit third country procurement to certain products and is concerned that this would put excessive restrictions on Ukraine to defend itself," the German government wrote in a letter to EU capitals that was seen by Politico.

EU member states and the European Commission are now haggling over the terms of the package, which EU leaders signed off on last month. The bloc chose to provide the funds to Ukraine after talks collapsed over tapping frozen Russian assets for a proposed reparations-style arrangement.

Tension increased within the bloc after years of disputes over whether to involve Washington in EU defense procurement programs.

Critics of the French position say a rigid "buy European" rule would delay weapons deliveries and limit Kyiv's access to critical systems needed to defend against Russia.

The Netherlands has proposed ring-fencing 15 billion euros for immediate procurements from outside Europe, with officials arguing Ukraine cannot be sustained by European equipment alone.

"Ukraine also urgently requires equipment produced by third countries, notably US-produced air defense systems and interceptors, F-16 ammunition and spare parts, and deep-strike capacities," the Netherlands government wrote in a letter to fellow EU member states.

The current draft plan for the loan foresees directing roughly two-thirds of the 90-billion-euro package toward arms for Kyiv, with the balance used to cover the Ukraine government's fiscal shortfall.

The Daily Telegraph newspaper cited a senior EU official as saying the package prioritizes arms shipments because internal assessments indicate fighting in the Russia-Ukraine conflict will not end soon.

The plan would attach stringent restrictions to purchases from the US or other non-European suppliers.

But France continues to push for an all-out "buy European" policy, citing worries about Europe's reliance on the US and uncertainty about Washington's long-term security commitment.