German Chancellor Friedrich Merz said he would block the European Union’s next seven-year budget if all member states did not agree to provide financial support to Ukraine in 2027 and beyond. This was reported by the Financial Times, writes UNN.
Details
In a letter to European Council President António Costa, seen by the Financial Times, Merz made support for the EU budget for 2028–2034 conditional on the agreement of all member states to finance Ukraine, which is facing a €70 billion funding shortfall next year because of the war.
The collective commitment of all of us, without exception, to making a fair contribution to covering Ukraine’s (financial) deficit is a necessary prerequisite for resolving this issue and discussing any other issues, especially those with financial implications
The ultimatum came ahead of the EU leaders’ meeting in Dublin, which will take place on Thursday and Friday. Merz insists that the issue of the funding shortfall for Kyiv must be resolved.
In December last year, EU leaders agreed on a €90 billion loan for Ukraine. However, due to the scale of Russia’s military aggression against its neighboring country, Kyiv said it would need an additional €70 billion in funding next year. Ukraine’s allies also acknowledge this shortfall.
The EU has promised to cover two-thirds of this amount — about €45 billion. The European Commission is working on options to fulfill this commitment, including considering the possibility of issuing additional common debt. Leaders are expected to reach an agreement by the end of the year.
At the same time, four EU countries — Hungary, Slovakia, Bulgaria and the Czech Republic — have indicated that they will not participate in further financial assistance to Kyiv. Hungary, Slovakia and the Czech Republic secured an exemption last year from participating in interest payments on the €90 billion loan.
In his letter, Merz emphasized that "we must find a solution that will be supported by all member states and that will provide Ukraine with a stable, multi-year funding perspective from 2028," in particular to pay interest on the country’s outstanding debts.
Marine Le Pen, who is leading public-opinion polls ahead of France’s presidential election in April, also said that if she won and replaced Emmanuel Macron as president, she would end support for Kyiv, leaving only certain operational assistance and training for Ukrainian troops.
Discussion of financing for Ukraine in the EU is taking place alongside difficult negotiations on the bloc’s budget for the period beginning in 2028. Germany is the largest net contributor to the EU budget, while the four countries seeking to avoid further participation in financing Ukraine are net recipients.
Using Germany’s influence during the budget negotiations, Merz seeks to secure funding for Kyiv both for next year and for the period beyond. Upcoming elections in several EU countries, including Italy and Poland, could further complicate reaching unanimous agreement on financing Ukraine.
Berlin also seeks to ensure that future decisions on financing Ukraine are adopted by a qualified majority of EU countries rather than unanimously, as is currently required. This should help prevent individual states from blocking decisions.
"Ukraine’s financial needs must be addressed within the next (EU budget)," a representative of the German government said. "Financial support for Ukraine by all EU member states is a necessary condition for the successful conclusion of the (EU budget negotiations)."