Germany tied the EU budget to funding for Ukraine

Berlin's ultimatum on the eve of the Dublin meeting

German Chancellor Friedrich Merz has threatened to block the next seven-year EU budget if member states refuse to finance aid to Ukraine in 2027 and beyond. This is reported by the Financial Times citing Merz's letter to European Council President António Costa. In the letter, the chancellor directly tied Germany's support for the EU budget for 2028–2034 to the consent of all bloc countries to cover Ukraine's deficit, which is estimated at €70 billion for next year.

The substance of the demand

“A collective commitment by all of us, without exception, to make a fair contribution to covering Ukraine's deficit is a necessary condition for resolving this issue and discussing any other issues, especially those with financial implications,” Gazeta.Ru quotes from the letter. According to the FT, the ultimatum came on the eve of a meeting of EU leaders in Dublin, and Merz insists that the question of financing Ukraine must be resolved at that event.

Background: Kyiv's request and the European Council's position

Berlin's demand came amid a protracted dispute over covering Ukraine's deficit. On October 16, Ukrainian President Volodymyr Zelensky requested additional funding from the European Union of €70 billion. European Council President António Costa said at the time that the EU was ready to cover roughly two-thirds of the amount — about €46.7 billion. In November, a source told Ukrainska Pravda that the Europeans were prepared to pay off only part of the requested sum. Thus, Merz's letter changes the framework of the discussion: the issue ceases to be a matter of voluntary agreements on the share of coverage and becomes tied to the adoption of the union's entire next multi-year budget, on which funding for many other programs depends.