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NATO prepares $100bn fund for Ukraine

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NATO is preparing a five-year military aid package worth up to $100 billion to protect Ukraine from the “winds of political change” that could lead to Donald Trump’s second term in office.

The so-called ‘Ukraine mission’ proposal, to be discussed by NATO foreign ministers on Wednesday, was put forward by Secretary General Jens Stoltenberg.

According to five alliance diplomats who briefed the Financial Times (FT) on the plan, it would coordinate an estimated $100 billion in assistance pledged by the military alliance’s 32 members.

According to people familiar with Stoltenberg’s remarks, he presented the proposal as a means of ‘protecting the mechanism against the winds of political change’.

Ramstein group could come under NATO control

If the proposal is approved, control of the US-led Ramstein arms support group would also pass to the alliance, allowing it to manage the supply of lethal weapons to Ukraine for the first time since the start of the war.

Stoltenberg reportedly wants to reach an agreement before NATO leaders meet in Washington in July.

“This is crossing the Rubicon,” one diplomat told the FT. NATO will have a role in coordinating lethal support for Ukraine. I see a consensus emerging and I think by the time we get on the plane to Washington it will have happened,” one diplomat told the FT.

Another official told POLITICO that another proposal was to give NATO a more formal seat at the table within the Ukraine group, but that it would not be under NATO control. The goal of the US side is to strengthen the relationship between NATO and Ukraine for long-term support, the official said.

Support for Kiev ‘to be secured’ in case of Trump

The mission proposal comes as the Joe Biden administration struggles to win congressional approval for a $60 billion bilateral military aid package for Ukraine ahead of November’s presidential election, which Republican nominee Donald Trump has publicly opposed. Many allies see the impasse as a harbinger of how US policy towards Kiev will change under a Trump presidency.

Diplomats said the US share of the $100 billion fund would be significantly less than the bilateral aid package under consideration. As debate continues over the structure of the funding, some are calling for the same split used to fund NATO’s common budget, which would require the United States to provide just over $16 billion.

“$100 billion over the next five years to support the future Ukrainian armed forces,” the diplomat said, adding that NATO’s common budget coefficients could be used to calculate individual shares of total spending. “This solves the problem of burden sharing,” he said.

NATO foreign ministers to discuss plan

The plan is seen as a way to secure long-term funding ahead of Trump’s possible election and to give Kiev a tangible outcome from the summit, rather than a path to NATO membership that many alliance members see as impossible.

“Foreign ministers will discuss the best way to make NATO’s support for Ukraine stronger, more predictable and more sustainable,” a NATO official said, adding that discussions were expected to continue ahead of the July summit.

The bulk of Western arms supplies to Ukraine are managed by the US-led Ramstein Group, formally known as the Ukraine Defence Contact Group, which meets regularly to discuss how best to coordinate bilateral deliveries.

Two of the diplomats warned that the proposal would need the support of all 32 members and that there could be months of negotiations during which parts of the proposal could be withdrawn.

One person familiar with the matter described Stoltenberg’s proposal as “fairly new” and said allies wanted more information from the NATO chief. The person said there had been discussions about NATO becoming more involved in the Ramstein process, but no decision had been taken.

Hungary and some other countries could again put obstacles in the way

Meanwhile, questions remain, such as whether existing bilateral aid will be included in the $100 billion.

Some resistance is expected from countries such as Hungary, which opposes supplying arms to Ukraine and is wary of any move that would give NATO a direct role in the conflict, or even imply one.

Julianne Smith, the US ambassador to NATO, said: “We continue to work with our friends in Europe and Canada to ensure continued support [for Ukraine]. That is the focus of NATO headquarters. I don’t see anybody taking their foot off the gas. I see countries coming up with new ideas every week and I expect that to be the focus of the ministerial meeting that starts tomorrow,” Smith said.

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Le Pen wins first round of French elections

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The first round of the snap National Assembly elections, called by French President Emmanuel Macron following his heavy defeat in the European Parliament elections, took place on 30 June.

According to preliminary results, Marine Le Pen’s National Rally (RN) party came first with around 33% of the vote, while the New Popular Front (NFP) came second with 28%. Macron’s alliance, All Together for the Republic (Ensemble), received 21% of the vote, while the conservative Les Républicains received 10%.

If no candidate in a constituency wins an absolute majority (more than 50% of the votes cast) in the first round, a run-off election is held.

This is the case in most constituencies. According to preliminary results, only 39 candidates from the RN, which has 297 MPs, have won an absolute majority in their constituencies.

The second round will take place on 7 July and will be between the top two candidates from the first round. However, any candidate who received the votes of at least 12.5 per cent of registered voters in the first round can also participate in the second round. The candidate with the most votes in the second round wins the seat, even if there is no absolute majority.

Therefore, even if the RN were to win the first round, it is currently uncertain whether they would have an absolute majority (289 seats) in parliament.

Le Pen wants ‘absolute majority’

Le Pen declared that her party had “practically wiped out” Emmanuel Macron after winning the first round of the election.

Speaking after the results were announced, Le Pen said she would seek an “absolute majority” in the second round of voting next Sunday.

Addressing her supporters after the polls closed, Le Pen said: “Democracy has spoken and the French have almost wiped out the Macron camp and put the RN and its allies in the lead. We need an absolute majority so that [RN leader] Jordan Bardella can be appointed prime minister within a week,” she said.

Le Pen was re-elected as MP for Hénin-Beaumont in the first round after winning more than 50% of the vote.

‘No vote for the RN’ statement by Mélenchon

Jean-Luc Mélenchon, leader of France Without a Front (LFI), the main party of the New Popular Front (NFP), said on Sunday that Macron’s alliance had suffered a “heavy and undeniable” defeat in the snap elections and called on the French people to vote against the far right.

The LFI leader said he would withdraw his candidates in constituencies where his party came third and the RN was leading ahead of the run-off.

“Our instructions are simple, direct and clear. Not one more vote, not one more seat for the RN,” Mélenchon said.

The LFI leader also called on voters to give “an absolute majority to the New Popular Front”.

“The country will have to make a choice,” Mélenchon said in a statement from his party’s campaign headquarters. He argued that the options for Sunday’s second round were “either the New Popular Front or national unity”.

Macron calls for a ‘broad alliance against the right’

For his part, Macron called for a “broad alliance” to prevent the victory of the “extreme right”.

“The time has come for a great, openly democratic and republican rally against the National Rally for a second round,” he said.

Prime Minister Gabriel Attal argued that “not a single vote should go to the National Rally”.

Warning that “the far right is on the verge of power”, Attal said his party would abandon its candidacy in 60 constituencies to support “republican” candidates against the RN.

Demonstration against the RN in Paris

Meanwhile, thousands of people took to the streets of Paris to protest against the RN’s victory.

“I’m really worried about the far right coming to power,” Alban, a 23-year-old student who requested anonymity, told POLITICO. Alban said they still had a week to go and would “keep fighting”.

Reuters later broadcast video of protesters setting off fireworks as they marched through Paris. BFMTV reported that 200 police had been deployed in Lyon to deal with the protests.

The ‘security cordon’ has collapsed and will collapse again

A week of political bargaining will now begin as centre and left parties decide whether to withdraw from individual seats to prevent the RN, long excluded from mainstream French politics, from winning a majority.

In the past, when the RN has made a strong showing in the first round of voting, centre and left parties have joined forces to prevent it from taking office under a principle previously known as ‘cordon sanitaire’.

After Jean-Marie Le Pen, Le Pen’s father and the decades-long leader of the RN’s predecessor, the National Front, unexpectedly defeated Socialist candidate Lionel Jospin in the 2002 presidential election, the Socialists threw their weight behind centre-right candidate Jacques Chirac, giving him a landslide victory in the second round.

Marine Tondelier, leader of the Greens, seen as the more “moderate” part of the NFP, made a personal plea to Macron to withdraw from some seats to prevent the RN from winning a majority.

“We are counting on you: withdraw if you come third in a three-way race, and if you don’t make it to the second round, ask your supporters to vote for a candidate who supports republican values,” Tondelier said.

Bardella hits Popular Front, not Macron

In his speech last night, RN leader Jordan Bardella, who wants to become prime minister if his party wins on 7 July, did not criticise Macron’s camp, but instead attacked the National Front.

Bardella said the New Popular Front was “an existential threat to the French nation” and accused the NFP of wanting to disarm the police and open France’s borders to migrants, and of having “no moral limits”.

“It is time to give power to leaders who understand you, who care about you,” the RN leader told voters.

AfD wants RN to win

The RN also received support from the Alternative for Germany (AfD), from which it had recently distanced itself.

AfD leader Alice Weidel said she hoped for a decisive victory for the RN in the French parliamentary elections, although she acknowledged that there was a rift between the parties that would be difficult to heal.

Weidel told the Financial Times that she was “hopeful” for the RN and optimistic that its leader, Jordan Bardella, would become France’s youngest ever prime minister.

Weidel said he had “full confidence in Bardella and the RN’s ability to shake up their country”, while Bernd Baumann, leader of the AfD in the Bundestag, said the RN’s popularity showed that the entire European right “has the wind in its sails”.

“Giorgia Meloni, Marine Le Pen, the FPÖ in Austria, all this is a confirmation for us and shows that we are on the right side of history,” Baumann said.

But Weidel conceded that the AfD and RN had little chance of overcoming the dispute that led to their expulsion from the Identity and Democracy (ID) group in the European Parliament in May, following a series of scandals involving the German party.

Weidel said the AfD was looking for new partners and was trying to form its own group.

Weidel also insisted that he had “no grudge” against Marine Le Pen, the RN’s parliamentary leader.

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Serbia-Kosovo negotiations collapse

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The European Union’s attempt to breathe new life into stalled negotiations between Serbia and Kosovo has collapsed after the Serbian president and Kosovo prime minister failed to meet as planned.

The meeting, which was due to take place almost a year after the two leaders last met, came after repeated failed negotiations.

Both Serbian President Aleksandar Vucic and Kosovo Prime Minister Albin Kurti met separately with EU representatives, but according to EU chief diplomat Josep Borrell, there was no progress in implementing the agreement and no trilateral meeting.

Talks between Serbia and Kosovo aimed at reaching a major agreement that would pave the way for the normalisation of relations broke down last year.

During a summit in North Macedonia in March, Vucic refused to sign the EU- and US-backed Ohrid Agreement, citing pain in his right hand that would “probably last for years”.

Diplomats continued to call for its implementation, but the unsigned agreement was not implemented by either side.

Borrell said the EU “will continue to put all its efforts and capacities behind the normalisation of relations between Kosovo and Serbia”.

Borrell said those efforts would continue next week when he hosts the two negotiators in Brussels.

Vucic blamed Kurti for the lack of talks, saying his Kosovar counterpart “did not dare to meet”.

Kurti countered that he had set conditions for talks with Vucic, including the surrender of Milan Radoicic, the former vice-president of Kosovo’s leading Serb party, who confessed to leading a commando team that ambushed a Kosovo police patrol in September last year.

As last year’s talks collapsed, riots broke out in Serb-majority areas of northern Kosovo.

Tensions escalated further after Pristina made the euro the only legal currency in its territory in February, effectively banning the use of the Serbian dinar.

This put pressure on Serbia’s ability to continue funding a parallel health, education and social security system for Kosovo Serbs.

Kurti defended the move as a means of stemming the flow of large sums of money from Serbia into Kosovo and bringing organised crime groups to heel.

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EU seeks defence partnerships with Japan and South Korea

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The European Union (EU) may seek security and defence partnerships with Japan and South Korea, paving the way for wider joint development projects in the defence industry, Nikkei Asia reported.

“We hope to develop partnerships with Japan and South Korea to work more closely together,” a senior European Commission official told Nikkei, adding that the security environment in Europe and Asia has changed dramatically.

Brussels is aiming for a ministerial-level agreement with Japan by the end of the year.

Brussels also has security and defence partnerships with non-EU countries such as Norway. Establishing a similar partnership with an Asian country would be a first.

Japan and the EU share common challenges such as relatively small national defence industries, high R&D and production costs, and dependence on US contractors.

There is also a proposal to increase opportunities for Japanese companies to participate in EU-led defence R&D programmes. The EU could provide funding for projects between Japanese and European companies.

Working with European companies could provide Japan with opportunities to develop defence technology, reduce costs and expand hardware sales channels.

For the EU, the partnership would provide a basis for defence industrial cooperation with Japan, offer opportunities for joint equipment development and increase supply options.

Meanwhile, South Korea is also increasing its arms exports to Europe. Poland has placed large orders for South Korean K2 tanks and K9 howitzers. Romania, Finland and Estonia are also increasing their purchases of South Korean weapons.

The EU will also consider cooperation in areas such as space, cybersecurity, disinformation and maritime security. The Japan partnership plan also includes cooperation on nuclear disarmament and non-proliferation, an important issue in the election campaign of Japanese Prime Minister Fumio Kishida.

In the wake of Russia’s intervention in Ukraine, the EU published its first defence industrial strategy in March, under which member states will work together to develop and increase arms production. Recognising the EU’s limitations on its own, the bloc is seeking to deepen ties with Japan, South Korea and other Western allies in the region.

In an interview with Nikkei in June, European Commission President Ursula von der Leyen said that security was one of the areas in which she wanted to improve Japan-EU relations. At a summit in July, the two sides agreed to launch a ministerial-level strategic dialogue on security.

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