Merz presented an ultimatum to EU countries: Either guarantees of financial support for Ukraine, or Germany will block the common budget

In the letter, the Chancellor linked Germany's support for the EU budget for 2028-2034 with the agreement of all member states to participate in financing Ukraine. According to estimates, Kyiv will face a shortfall of 70 billion euros next year.

«A common commitment from all of us without exception to make a fair contribution to covering Ukraine's financial deficit is a necessary condition for resolving this issue and discussing any other issues, especially those with financial implications,» Merz wrote.

This demand was made ahead of a meeting of EU leaders in Dublin, scheduled for Thursday and Friday. Merz insists that an agreement on covering Ukraine's funding shortfall must be reached during it.

Negotiations on aid to Kyiv are taking place in parallel with the difficult discussion of the European Union's budget for the period from 2028. Germany is the largest net contributor to the EU budget, while four countries unwilling to take on additional costs to support Ukraine receive more funds from it than they contribute.

Using Germany's financial leverage in budget negotiations, Merz aims to secure funding for Ukraine both next year and in the long term. Future elections in several EU countries, including France, Italy, and Poland, may also hinder reaching a general agreement.

The head of the German government stated that financial support for Ukraine from all EU member states is a necessary condition for the successful conclusion of negotiations on the bloc's budget.

Last December, EU leaders agreed to allocate a 90 billion euro loan to Ukraine. However, due to the scale of Russian aggression, Kyiv stated that it would need an additional 70 billion euros in funding in 2027. This shortfall is also recognized by Ukraine's allies.

The European Union has pledged to cover two-thirds of the required amount — approximately 45 billion euros. The European Commission is considering various ways to fulfill this commitment, including the possibility of issuing additional joint debt obligations. Brussels expects that EU leaders will be able to reach an agreement by the end of the year.

However, Hungary, Slovakia, Bulgaria, and the Czech Republic have made it clear that they will not participate in further financing of Kyiv. Hungary, Slovakia, and the Czech Republic secured an exemption from paying interest on the 90 billion euro loan last year.

In his letter, Merz emphasized that in such a case, a solution supported by all EU countries must be found, which would provide Ukraine with a reliable multi-year financing perspective from 2028. This includes the payment of interest on the outstanding portion of Ukraine's debt.

At the summit on October 15-16, the European Council instructed the European Commission to prepare proposals that would help cover the shortfall in the Ukrainian budget for 2027.

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