In brief: German Chancellor Friedrich Merz has threatened to block the EU’s next seven-year budget unless all member states commit to financing Ukraine in 2027 and beyond, the Financial Times reported. His demand links the bloc’s wider spending negotiations to Kyiv’s urgent funding needs, as several governments resist further contributions and Germany seeks a lasting agreement.
German Chancellor Friedrich Merz has threatened to block the European Union’s next seven-year budget unless every member state commits to financially supporting Ukraine in 2027 and subsequent years, the Financial Times reported on Monday, Nov. 9.
In a letter to European Council President António Costa, reviewed by the newspaper, Merz made Germany’s support for the bloc’s 2028-2034 budget conditional on a collective commitment to fund Ukraine, the FT reported.
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“A collective commitment that all of us, without exception, will contribute fairly to closing [Ukraine’s financing] gap” was essential before further discussions involving financial commitments, Merz wrote.
Ukraine faces an additional financing shortfall of approximately €70 billion ($78 billion) in 2027 as Russia’s continuing war drives up its military and budgetary needs.
Merz also demanded a solution supported by all member states that would provide reliable, multiyear financing from 2028 onward, including interest payments on outstanding Ukraine-related debt.
Germany can block the long-term budget
The warning gives Ukraine’s funding needs a direct place in negotiations over the EU’s wider spending priorities.
The bloc’s long-term budget, formally known as the Multiannual Financial Framework, sets spending limits across policy areas including agriculture, regional development, research and external assistance.
Adopting it requires unanimous agreement among EU governments and the European Parliament’s consent. Germany could therefore prevent approval by withholding its agreement.
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The European Commission’s proposal for 2028-2034 envisages mobilizing up to €100 billion ($112 billion) for Ukraine. That remains a proposal subject to negotiations.
The Commission says Ukraine funding would retain flexibility because the country’s needs are large and difficult to predict. Support for operations with military implications would continue through the separate European Peace Facility.
Several governments resist further contributions
Merz’s demand challenges governments seeking to avoid additional financial commitments while allowing other EU members to proceed.
Hungary, Slovakia, Czechia and Bulgaria have indicated that they would not participate in a new loan for Kyiv, according to reporting on the funding negotiations.
In October, Slovak Prime Minister Robert Fico said Slovakia and Hungary would sit out further financing. He also criticized linking assistance for Ukraine to the EU’s future budget.
Germany, the bloc’s largest net budget contributor, is using its negotiating leverage to press for broader participation, the FT reported.
Berlin also wants future Ukraine financing decisions to require a qualified majority rather than unanimity, reducing individual governments’ ability to block subsequent support. That would be a change sought by Germany, rather than an agreed EU arrangement.
Ukraine’s shortfall exceeds existing aid commitments
The additional €70 billion requirement comes on top of financing already arranged under the EU’s €90 billion ($101 billion) loan covering 2026 and 2027.
EU leaders previously tasked the European Commission with developing options to close the new gap while disbursements continue under the existing package.
Costa has said the EU would normally cover around two-thirds of Ukraine’s additional financial needs, with other partners contributing the remainder. The Commission is examining options, including further joint borrowing.
A final agreement on the financing mechanism has not been reached.
Brussels has also been seeking larger contributions from non-EU partners, including Britain and Canada, as anticipated international support has failed to fully cover Ukraine’s growing requirements.
The effort concerns both sustaining Ukraine’s defense and keeping the state functioning through another year of war. EU officials have emphasized broader international burden-sharing rather than relying increasingly on European taxpayers alone.
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