German Chancellor Friedrich Merz has threatened to withhold support for the European Union’s 2028–2034 budget unless all member states commit to sharing the cost of financial assistance to Ukraine, raising tensions ahead of further negotiations.
Berlin is seeking a collective commitment to fund Kyiv in 2027 and establish a lasting financing arrangement beyond that year. Ukraine faces an estimated €70 billion funding shortfall next year, with the EU expected to cover approximately €45 billion. Joint European borrowing is among the options under discussion.
Merz’s position challenges exemptions sought by governments reluctant to contribute further. Hungary, Slovakia, Bulgaria and the Czech Republic have indicated opposition to additional financial commitments, while Germany argues that responsibility for supporting Ukraine should be shared across the bloc.
The proposed link between Ukraine assistance and the wider European budget has drawn objections. Slovak Prime Minister Robert Fico has accused Merz of applying political pressure, while critics argue that combining the negotiations could make agreement on both issues more difficult.
Germany, the EU’s largest net budget contributor, is also seeking changes that would allow future Ukraine funding decisions to be taken by qualified majority rather than unanimity. Such a change would reduce individual governments’ ability to block assistance.
The dispute adds another challenge to negotiations over the EU’s next seven-year spending framework. European leaders must now reconcile demands for continued support to Kyiv with disagreements over national contributions, borrowing and the distribution of the bloc’s resources.
