Latest news with #EUDefense
Russia Today
22-05-2025
- Business
- Russia Today
Ukraine wants fixed percentage of EU's GDP
Ukraine has proposed that EU member states allocate a fixed portion of their GDP to fund the country's armed forces. The bloc's leaders have pledged continued military support for Kiev despite a policy change by US President Donald Trump, who aims to mediate a truce. Finance Minister Sergey Marchenko outlined the proposal during this week's G7 finance ministers meeting in Canada, according to a Facebook post published on Thursday. 'What we are proposing is partner participation in funding Ukraine's Armed Forces, which would effectively integrate them into Europe's defense structure,' he wrote. Marchenko added that the cost 'would represent only a small share of the EU's GDP' and could be distributed among countries willing to join the initiative. Kiev wants to launch the new scheme in 2026, with contributions counted toward NATO defense spending targets. Marchenko's appeal comes as Ukraine struggles with rising fiscal pressure and an uncertain outlook on foreign assistance. On Tuesday, MP Yaroslav Zheleznyak said the country's 2025 budget includes a shortfall of 400–500 billion hryvnias ($9.6–12 billion) for financing its armed forces. Fellow lawmaker Nina Yuzhanina warned that military support was at a critical level and called for sweeping domestic budget cuts to redirect resources. Ukraine's mounting debt has also raised alarm. Total state debt is approaching $171 billion, with public debt nearing 100% of GDP. Earlier this month, Marchenko said the country would be unable to repay foreign creditors for the next 30 years but intends to continue borrowing. Since the escalation of the conflict with Russia in 2022, Ukraine has received billions in military, financial, and humanitarian aid and loans from the US, the EU, and other donors. Brussels' approach has drawn criticism from some EU member states, including Hungary and Slovakia. The US, Ukraine's largest donor, has moved to recoup its financial aid to Ukraine by signing a natural resources deal with Kiev. The agreement, pushed by Trump, grants the US preferential access to Ukrainian mineral resources without providing security guarantees. Trump, who has repeatedly called for a swift resolution to the conflict, has pledged to mediate a truce rather than expand military support. Ukrainian lawmakers have warned that the military aid package approved under former President Joe Biden will run out by summer, and no talks on further US deliveries are currently underway. Russia has consistently condemned Western arms shipments to Ukraine, declaring that they will only prolong the conflict without changing its outcome, while also being an additional economic burden for ordinary taxpayers.
Asharq Al-Awsat
22-05-2025
- Business
- Asharq Al-Awsat
Greece Says Türkiye Must Lift War Threat to Get Access to EU Defense Funds
Türkiye must lift a 30-year old war threat against Greece if it wants Athens to consent to Ankara accessing European Union defense funds, Greek Prime Minister Kyriakos Mitsotakis said on Thursday. Greece and Türkiye, NATO allies but historic foes, have been at odds for decades over a range of issues from airspace to the extent of their maritime boundaries and ethnically-split Cyprus. In 1995, the Turkish parliament declared a "casus belli", or cause for war, if Greece unilaterally expanded its territorial waters beyond six nautical miles in the Aegean Sea. "If Türkiye wishes access into European defense financing tools, the legitimate concerns of both Greece and Cyprus should be taken into account," Mitsotakis said, referring to projects such as the EU's new flagship arms-buying fund, Security Action for Europe (SAFE), Reuters reported. "It has been 30 years since the Turkish National Assembly voted on the infamous casus belli. I think that 30 years later, the time has come to directly ask our Turkish friends to take it off the table," he told Skai radio. Mitsotakis said he would convey the message to Turkish President Tayyip Erdogan soon, citing improved bilateral ties. Asked about Greece trying to keep Türkiye away from EU defense projects, a Turkish defense ministry source said earlier that any attempts to disregard Türkiye's importance for European security were bound to fail. "Carrying bilateral disputes to multilateral platforms and putting forth an approach aimed at excluding our country is both a step that is not taken with good intentions, and not a smart one," the source said. Ankara and Athens have been exploring whether they can start talks aimed at demarcating their maritime zones. Mitsotakis said that a high-level meeting between the two countries will take place in the coming months.
