Germany links EU budget to Ukraine aid
Chancellor Friedrich Merz says Berlin will block the 2028-2034 multiannual financial framework unless all member states commit to closing Kyiv's 2027 funding gap.
By Olga Menon ·
German Chancellor Friedrich Merz has set a condition for Berlin's approval of the next European Union budget.
In a letter to European Council President António Costa, Merz tied Germany's support for the 2028-2034 budget to a collective agreement that all member states will fund Ukraine.
Kyiv faces a 70 billion euro funding gap next year. The EU has pledged to cover two-thirds of this amount, roughly 45 billion euros. Brussels is currently considering the issuance of joint debt obligations to meet this commitment.
Merz stated that a collective commitment from all members, without exception, is an essential prerequisite for resolving the issue. He emphasized that financial support from every state is necessary to complete the budget negotiations successfully.
This ultimatum arrives as EU leaders prepare to meet in Dublin on Thursday and Friday. The summit will focus on the funding shortfall for 2027 while negotiations on the 2028 budget continue in parallel.
Germany is the largest net contributor to the EU budget. Four countries, Hungary, Slovakia, Bulgaria, and Czechia, are net beneficiaries and have signaled they will not contribute to further assistance. Hungary, Slovakia, and Czechia previously secured exemptions from interest payments on the 90 billion euro loan agreed last December.
Merz urged leaders to find a solution that ensures a multiannual financing perspective for Ukraine from 2028 onwards, including interest payments on outstanding debt. The European Commission aims for a deal by the end of the year, though upcoming elections in Italy and Poland may complicate consensus building.
