BRUSSELS — Negotiations over the EU’s proposed €409 billion Competitiveness Fund are splitting capitals and Parliament over whether non-EU countries should be allowed to tap its defense money — and on what terms. Fraught talks on those rules are expected to dominate negotiations on Tuesday night in the European Parliament, with officials saying the chances of a breakthrough are remote. On Wednesday, EU ambassadors will discuss a compromise text put forward by the Irish presidency of the Council that would allow third countries to sign association agreements with the EU to take part in bloc-funded defense programs, according to a document seen by POLITICO .
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