Merz Threatens To Block EU Budget Unless Agreement Is Reached On Ukraine Funding FT

(MENAFN- UkrinForm) Ukrinform reports this, citing the Financial Time, which has seen the chancellor's letter to European Council President António Costa.

"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 wrote.

According to the publication, in his letter the German chancellor linked the resolution of this issue to further discussions on other matters, particularly those with financial implications. The FT reports that Merz has made Germany's support for the EU's next seven-year budget conditional on all member states being willing to contribute to meeting Ukraine's financial needs.

Ukraine is expected to face a funding gap of €70 billion in 2027. The European Union has committed to covering approximately two-thirds of this amount, or around €45 billion. The European Commission is considering possible financing mechanisms, including raising additional funds through joint borrowing.

At the same time, according to the Financial Times, four EU member states – Hungary, Slovakia, Bulgaria, and the Czech Republic – have signaled their reluctance to participate in providing further financial assistance to Kyiv. Hungary, Slovakia, and the Czech Republic had previously secured exemptions from contributing to interest payments on the €90 billion EU loan to Ukraine agreed in December 2025.

In his letter to Costa, Merz also stressed the need to find a solution supported by all member states that would provide Ukraine with a reliable multi-year funding outlook starting in 2028. This would include servicing interest payments on existing debt obligations related to support for Ukraine.

According to the Financial Times, Germany, the EU's largest net contributor to the bloc's budget, is using its leverage in budget negotiations to secure long-term financial support for Kyiv. Berlin also seeks to ensure that future decisions on funding Ukraine can be adopted by a qualified majority of member states rather than unanimously. This would prevent individual countries from blocking such decisions.

"Ukraine's financial needs need to be resolved in the framework of the next EU budget," a spokesperson for the German federal government told the publication.

According to the spokesperson, the participation of all member states in providing financial support to Ukraine is a necessary condition for successfully concluding negotiations on the EU budget.

Read also: Merz to discuss further support for Ukraine with Magya

Merz insists that the issue of further funding for Ukraine be discussed ahead of the meeting of European leaders in Dublin. An informal summit of EU heads of state and government is scheduled for November 13.

As Ukrinform reported, European Commissioner for Economy Valdis Dombrovskis has expressed cautious optimism that the European Union will decide to cover two-thirds of Ukraine's €70 billion funding gap next year.

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