Merz has threatened to block EU budget unless all countries guarantee funding for Ukraine, - FT
German Chancellor Friedrich Merz has warned that Berlin will block the European Union’s next budget for 2028–2034 unless all Member States commit to providing financial support to Ukraine in 2027 and beyond.
This is stated in a letter from Merz to the President of the European Council, António Costa, which the Financial Times has seen, according to Censor.NET.
What Merz is calling for
In the letter, the Chancellor makes Germany’s support for the EU budget for 2028–2034 conditional upon all member states agreeing to provide funding for Ukraine. Merz wrote:
"The collective commitment of all of us, without exception, to contribute fairly towards covering Ukraine’s funding shortfall is an essential prerequisite for resolving this issue and discussing any other matters, particularly those with financial implications".
According to the FT, the letter was received on the eve of the EU leaders’ meeting in Dublin, which is due to take place on Thursday and Friday. Merz is calling for the issue of Kyiv’s funding shortfall to be resolved at the meeting.
A deficit of 70 billion
- Last December, EU leaders agreed to a €90 billion loan for Ukraine. However, given the scale of Russian aggression, Kyiv has stated that it will need a further €70 billion next year. Ukraine’s allies also recognise this shortfall.
- The EU has pledged to cover two-thirds of the amount, i.e. around 45 billion euros. The European Commission is exploring options for fulfilling this pledge, including the issuance of additional joint debt instruments. Officials in Brussels hope that leaders will reach an agreement by the end of the year.
Four countries against
Four EU countries — Hungary, Slovakia, Bulgaria and the Czech Republic — have made it clear that they will not contribute to further financial aid for Kyiv. Last year, Hungary, Slovakia and the Czech Republic secured an exemption from paying interest on a 90 billion euro loan.
These four countries are net recipients of the EU budget, whilst Germany is the largest net contributor. By leveraging Berlin’s financial clout in the budget negotiations, Merz is seeking to secure funding for Kyiv both next year and in the longer term.
In his letter, Merz also emphasised that "we must therefore find a solution that all Member States will support and that will provide Ukraine with a reliable, long-term funding outlook from 2028", in particular to cover interest payments on outstanding debt.
