Germany will block EU budget unless all members fund Ukraine
Chancellor Friedrich Merz links approval of the 2028-2034 multiannual budget to a new deal covering Kyiv's 70 billion euro deficit.
By James Foster ·
German Chancellor Friedrich Merz has told EU leaders that Berlin will withhold its approval of the 2028-2034 European Union budget unless every member state agrees to financially support Ukraine in 2027 and beyond.
In a letter sent to European Council President António Costa, Merz set a clear condition for the bloc's long-term financial plan. Germany, the largest net contributor to the EU budget, is tying its signature to a collective agreement that closes the gap in Ukraine's finances. Kyiv has stated it requires an additional 70 billion euros next year, a figure that EU allies have also acknowledged.
Merz argued that a shared commitment from all countries is a prerequisite for moving forward with other financial discussions. "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," he wrote. He added that support from all member states is essential to complete the ongoing budget negotiations successfully.
The pressure is timely, as EU leaders convene in Dublin this Thursday and Friday. Merz wants the funding shortfall addressed during this summit. The talks on Ukraine's future financing are happening alongside difficult negotiations over the EU's 2028-2034 budget. While the European Commission is working on ways to cover two-thirds of the 70 billion euro gap, approximately 45 billion euros, it is considering issuing new joint debt obligations. Brussels hopes leaders can reach an agreement by the end of the year.
Four member states, Hungary, Slovakia, Bulgaria, and Czechia, have indicated they do not want to contribute further to Kyiv's assistance. These four countries are net beneficiaries of the EU budget, in contrast to Germany. Last year, Hungary, Slovakia, and Czechia secured an exemption from paying interest on the 90 billion euro loan that EU leaders approved in December 2025.
Merz's letter emphasizes the need for a solution that covers Ukraine's financing from 2028 onward, including interest payments on existing debt. The European Council already instructed the Commission in October to prepare proposals for the 2027 shortfall. Reaching a consensus may be complicated by upcoming elections in countries such as Italy and Poland.
The German government is using its influence in the budget talks to secure both immediate and long-term funding for Ukraine. The deadline for a deal on the 70 billion euro gap remains at the end of the year, with the Dublin summit serving as a key venue for the discussion.
