Merz threatens to block EU budget unless all states fund Ukraine
German Chancellor Friedrich Merz said Germany would block the EU's 2028–2034 budget unless every member state commits to financing Ukraine from 2027 onward. Ukraine faces an estimated €70 billion financing gap next year, of which the EU has pledged to cover about €45 billion.
Key points
- Germany will seek to block the EU's 2028–2034 budget without unanimous backing for Ukraine financing, Merz said
- Merz set his condition in a letter to European Council President António Costa
- Ukraine's estimated financing gap for 2027 stands at €70 billion
- The EU has pledged to cover about €45 billion, or two-thirds of the gap
- Hungary, Slovakia, Bulgaria and Czechia say they will not contribute further financing
- EU leaders agreed in December 2025 to provide Ukraine with a €90 billion loan
- An informal EU summit in Dublin is scheduled for November 13
Why it matters
Germany's leverage in EU budget negotiations could determine whether every member state provides sustained support for Ukraine. Linking Ukraine's financing to the 2028–2034 budget may delay agreement on both Ukraine's 2027 funding and the EU's multiannual financial framework. With several governments refusing further contributions, unanimity is uncertain.
What happened
Merz warned that Germany would block the EU's 2028–2034 budget unless all member states committed to financing Ukraine from 2027 onward. He presented the demand in a letter to European Council President António Costa and urged EU leaders to address Ukraine's financing shortfall at the November 13 summit in Dublin. He also called for a solution that would provide stable multiannual funding from 2028, including interest payments on Ukraine's outstanding debt. The European Commission is considering additional common borrowing or joint debt instruments to meet the EU's pledge.
How Ukrainian sources describe it
Ukrainian coverage links Merz's ultimatum directly to Ukraine's immediate need for at least €70 billion in additional EU defence support and the expected €155 billion cost of the war in 2027. It also stresses that failure to resolve the funding gap and the EU budget dispute could delay assistance already promised to Kyiv.
How international sources describe it
International reporting frames the dispute as a question of burden-sharing among EU members and of Germany's leverage over the bloc's budget negotiations. The central issue is whether collective support for Ukraine can be secured despite objections from several governments.
Where reporting differs
The European Commission said Ukraine faced no budget deficit in 2026, while Ukrainian officials and allies identify a €70 billion financing shortfall for 2027 and cite a projected €155 billion war cost. The disagreement concerns the timing and scale of Ukraine's external financing needs.
Background
EU leaders agreed in December 2025 to provide Ukraine with a €90 billion loan. The EU committed to covering roughly two-thirds of Ukraine's additional €70 billion financing need, and the Commission is considering additional common borrowing or joint debt instruments. The European Council tasked the Commission with preparing proposals to close Ukraine's 2027 funding gap. Hungary, Slovakia, Bulgaria and Czechia are net recipients of the EU budget and have said they will not contribute further to Ukraine. Hungary, Slovakia and Czechia were also exempted last year from paying interest on the €90 billion loan. Berlin also wants future decisions on Ukraine financing to be taken by qualified majority rather than unanimity.