Merz threatens to block EU's budget unless all members agree to fund Ukraine
Photo: German Chancellor Friedrich Merz (Getty Images)
German Chancellor Friedrich Merz is threatening to block approval of the EU's next seven-year budget unless all member states agree to support Ukraine, the Financial Times reports.
Merz issued the ultimatum in a letter to European Council President António Costa. He said Berlin's support for the EU budget for 2028-2034 directly depends on all member states agreeing to fund Ukraine, which is facing a €70 billion shortfall next year.
"A collective commitment that all of us, without exception, will contribute fairly to closing [Ukraine’s financing] gap is an essential prerequisite for resolving this issue and for discussing any further matters, particularly those with financial implications," Merz said.
The German chancellor stressed that financial support for Ukraine from every EU member state is a necessary condition for successfully concluding budget negotiations.
Leverage and future risks
Germany remains the EU's largest budget contributor, while the four countries seeking to avoid contributing to aid for Kyiv are net recipients of EU funds.
Merz has decided to use this financial leverage to secure funding for Ukraine both in 2027 and beyond.
The German chancellor insists that the issue of closing Ukraine's funding gap must be resolved at an EU leaders' meeting in Dublin.
The situation is further complicated by upcoming elections in several EU countries, including Italy and Poland, which could make it even harder to reach a consensus.
Ukrainian President Volodymyr Zelenskyy previously said that Ukraine needs €70 billion from the European Union for defense next year.
Meanwhile, Euronews reported that the EU is struggling to find €70 billion to fund Ukraine in 2027. Due to intensifying Russian strikes, the previously agreed loan is no longer enough to cover needs, and Brussels has no easy solutions for raising additional funds.
