Merz threatens to block EU budget unless all states fund Ukraine in 2027

Germany's condition for the budget

Chancellor Friedrich Merz has warned that Germany will block the next seven-year EU budget unless every member state commits to financing Ukraine in 2027 and beyond. In a letter to António Costa, which the Financial Times obtained and reported on Monday, 9 November, he argued that support for Kyiv currently falls on only a few member states. The 2028-2034 budget has been disputed for months, and its overall size is a recurring point of contention. Merz wrote that a collective commitment to fair contributions must come before leaders discuss any other question with financial implications.

“A collective commitment that all of us, without exception, make a fair contribution to closing the financing gap is an essential prerequisite for solving this problem.”

The Ukraine funding gap

Kyiv and its allies estimate that Ukraine will need about 70 billion euros more in 2027 to close its funding gap. The EU has pledged to cover two-thirds of that sum, roughly 45 billion euros, but it has yet to settle how that commitment will be met. The European Commission is examining options, including possibly issuing new joint debt. The gap follows a 90 billion euro loan that EU leaders agreed in December 2025, paid at 45 billion euros in each of 2026 and 2027. Berlin describes the support for Ukraine as distributed unevenly and resting largely on a few states, including its own bilateral military aid.

Ukraine 2027 gap (Kyiv estimate)70

EU pledged share45

Ukraine 2027 gap (Kyiv estimate)

70 billion euros

EU pledged share

45 billion euros

Data from the article text

Four holdouts

Hungary, Slovakia, Bulgaria and the Czech Republic have indicated that they do not plan to contribute to further financial aid for Kyiv. Hungary, Slovakia and the Czech Republic were already exempted from taking part in the 90 billion euro loan. Czech Prime Minister Andrej Babisz opposed using EU budget money for Ukraine under the 2028-2034 budget in October and said Prague would not guarantee such financing. He had also said in July that the Czech Republic would not give Ukraine direct financial aid from the state budget.

The Dublin summit

EU leaders are due to meet in Dublin on 12 and 13 November. Merz has asked that the Ukraine funding gap be placed on the agenda of the informal European summit, which is scheduled for Friday, 13 November. His letter asks for a solution supported by all member states that would give Ukraine a sound, multi-year financing outlook from 2028, including interest payments on existing debt linked to the country. The letter was sent from Berlin ahead of that meeting.

Open questions

The sources leave several points unresolved. It remains unclear how the EU will finance its 45 billion euro share, since the Commission is still weighing options. Whether the four countries that refuse new contributions will change their position is not reported. The overall size of the 2028-2034 budget is still under negotiation, and Merz's demand links that negotiation to the Ukraine question. Brussels hopes leaders can reach a deal by the end of the year, the nearest deadline reported.