German Chancellor Friedrich Merz has threatened to block the European Union’s seven-year budget for 2028–2034 if all countries in the bloc do not commit to further financing for Ukraine. The Financial Times reports this, citing his letter to European Council President António Costa.
According to the publication, Merz has made Berlin’s support for the new budget conditional on all 27 member states agreeing to participate in covering Ukraine’s financial deficit in 2027 and in subsequent years. He demanded that this be agreed at the meeting of EU leaders in Dublin, scheduled for November 13.
“A collective commitment that all of us, without exception, will make a fair contribution to covering Ukraine’s [financial] deficit is a necessary condition for resolving this issue and discussing any further issues, especially those with financial consequences,” Merz wrote in the letter, a fragment of which is cited by the FT.
Recall that in December last year EU leaders agreed on a €90 billion loan to Ukraine, designed for 2026–2027. However, Kyiv declared an additional need for €70 billion next year: according to the FT, the European Union promised to cover about two-thirds of this deficit.
Hungary, Slovakia, Bulgaria and Czechia opposed further financing. They refused to participate in new financial obligations to Kyiv; at the same time, Hungary, Slovakia and Czechia had previously secured an exemption from paying interest on the agreed €90 billion loan.
Merz insists that EU countries find a solution that will provide Ukraine with reliable multi-year financing from 2028, including debt servicing costs. In his position, without a common commitment from all members of the union, it is impossible to discuss other financially significant items on the EU agenda.
