German Chancellor Friedrich Merz has threatened to block the European Union's next seven-year budget unless it includes guarantees of funding for Ukraine.
According to Financial Times, cited by Report, in a letter to European Council President António Costa, the chancellor insists that the EU's 2028–2034 budget agreement include guarantees of financial support for Kyiv in 2027 and beyond. Experts estimate that Ukraine will face a funding shortfall of 70 billion euros next year.
"The collective commitment of all of us, without exception, to fairly contribute to closing Ukraine's (financial – ed.) gap is a necessary condition for resolving this issue and for discussing any further matters, especially those with financial implications," Merz wrote.
The ultimatum came ahead of an EU leaders' meeting in Dublin on Thursday and Friday, where Merz called for a solution to Kyiv's funding shortfall.
In December last year, EU leaders agreed on a 90 billion euro loan to Ukraine. However, the scale of Russia's military operations against its neighbouring country is such that Kyiv has said it needs an additional 70 billion euros in funding next year.
The EU has pledged to cover two-thirds of this amount, or around 45 billion euros. The European Commission is exploring options to fulfil this commitment, including issuing additional joint debt, in the hope that EU leaders will reach an agreement by the end of the year.
However, four EU countries – Hungary, Slovakia, Bulgaria and the Czech Republic – have indicated that they do not intend to participate in further financial assistance to Kyiv. Last year, Hungary, Slovakia and the Czech Republic secured exemptions from contributing to interest payments on the 90 billion euro loan.
In his letter, Merz stressed that "we must find a solution supported by all member states that ensures a reliable, multi-year funding perspective for Ukraine starting in 2028", including interest payments on outstanding debt related to the country.