This issue has been fixed in m2e 1.5.0 which is available for Eclipse Kepler (4.3) and Luna (4.4)

Please see https://bugs.eclipse.org/bugs/show_bug.cgi?id=374332#c14

The problem is caused by the fact that STS (the Spring IDE/Eclipse), as well Eclipse and other Eclipse based IDE's, use the m2e(clipse) plugin but that eclipse:eclipse has been probably been run on the project. When m2e encounters a "var" .classpath entry, it throws this error.

The update sites are specified at the following url:

http://eclipse.org/m2e/m2e-downloads.html

If you can't use m2e 1.5.0 for any reason, then :