German Chancellor Friedrich Merz has linked Berlin’s support for the European Union budget for 2028–2034 to a commitment from all member states to finance Ukraine in 2027 and beyond. The condition was set out in a letter to European Council President António Costa, seen by the “Financial Times,” reports “European Pravda.”
“A collective commitment from all of us, without exception, to make a fair contribution towards covering Ukraine’s financial deficit is a necessary condition for resolving this issue and for discussing all other matters, especially those with financial implications,” Merz writes in the letter.
Kyiv expects a shortfall of around €70 billion in 2027. European leaders have already agreed on a €90 billion loan to cover Ukraine’s needs in 2026 and 2027, but according to published data, this amount will not be sufficient. The European Union has committed to providing around two-thirds of the additional shortfall, or approximately €45 billion.
Berlin Uses Its Position in Budget Negotiations
Germany is the largest net contributor to the EU budget. Merz is using the country’s financial weight in the negotiations to push for a long-term mechanism to support Ukraine, including beyond 2027. According to “European Pravda,” Hungary, Slovakia, Bulgaria and the Czech Republic have not declared their readiness to participate in new contributions to financial aid for Kyiv.
The German government has confirmed that financial support for Ukraine from all member states is a necessary condition for the successful conclusion of the budget negotiations. In his letter, Merz insists that a solution be found to guarantee Ukraine a reliable multi-year funding perspective from 2028, including for debt servicing.
New Talks in Dublin and Brussels Are Ahead
The European Commission is examining options for covering the shortfall, including a new joint European loan and the use of frozen Russian assets. No decision has yet been made on the financing mechanism.
EU leaders will discuss the issue at an informal meeting in Dublin on November 13. Before the special European Council meeting on November 26, António Costa is expected to present a new proposal for the 2028–2034 budget. The negotiations are also expected to continue at the leaders’ meeting in December.
Alongside financial assistance for Ukraine, member states are also disputing the overall size and priorities of the next seven-year budget. The European Commission is proposing a package worth nearly €2 trillion, while Germany and other net contributors are calling for spending to be limited and redirected toward defence and competitiveness.
Sources: eurointegration.com.ua, apnews.com, lemonde.fr