Lauge Risom Koch 
German Chancellor Friedrich Merz threatens to block the EU’s seven-year budget unless all member states commit to funding Ukraine.
German Chancellor Friedrich Merz has threatened to block the European Union’s upcoming seven-year budget unless all member states commit to financing Ukraine. According to the Kyiv Post, Merz outlined this ultimatum in a letter to European Council President António Costa, linking the bloc’s broader spending negotiations to Kyiv’s critical funding requirements for 2027 and beyond.
Germany’s support for the 2028–2034 Multiannual Financial Framework is now explicitly conditional on a collective commitment to close Ukraine’s financing gap. Merz demanded that every member state contribute fairly without exception, pushing for a reliable, multiyear financing structure from 2028 onward that covers ongoing operational needs and interest payments on outstanding debt.
The strategy leverages Germany’s position as the EU’s largest net contributor to force unanimous participation in Ukrainian aid. Because the long-term budget dictates spending limits for agriculture, regional development, and research, and requires unanimous consent to pass, Berlin wields the power to stall the entire European financial agenda until its demands are met.
Pushback from member states and voting reforms
The German ultimatum directly challenges a growing faction of central and eastern European governments seeking to opt out of further financial commitments to Kyiv. According to reports on the funding negotiations, Hungary, Slovakia, Czechia, and Bulgaria have signaled they will not participate in a new joint loan. Slovak Prime Minister Robert Fico recently confirmed that his country and Hungary intend to sit out future financing rounds.
Fico strongly criticized the integration of Ukrainian assistance into the EU’s core future budget framework, highlighting the deepening political fractures over sustained economic support. By tying the Ukraine funding to the essential European budget, Merz aims to neutralize this regional resistance and prevent member states from enjoying EU budget benefits while dodging collective security responsibilities.
Beyond securing immediate funds, Berlin is advocating for structural changes to how the bloc approves future aid. Germany wants subsequent Ukraine financing decisions to require only a qualified majority rather than unanimous consent. If adopted, this reform would significantly reduce the ability of individual governments to veto or delay future support packages.
Bridging the multi-billion euro financial shortfall
The urgency of the negotiations stems from an estimated €70 billion ($78 billion) financing shortfall Ukraine faces in 2027 as the war continues to drain its resources. This massive deficit comes on top of the financing already secured under the EU’s existing €90 billion ($101 billion) loan package intended to cover 2026 and 2027.
The European Commission’s preliminary proposal for the 2028–2034 budget envisions mobilizing up to €100 billion ($112 billion) for Ukraine, while separate military support would continue through the European Peace Facility. European Council President Costa noted that while the EU typically covers two-thirds of Ukraine’s financial needs, the Commission is actively exploring joint borrowing options to close the new gap.
To ease the burden on European taxpayers, Brussels is simultaneously pressing non-EU partners, including Britain and Canada, to increase their financial contributions. EU officials stress that broader international burden-sharing is necessary to sustain Ukraine’s defense capabilities and keep the state functioning through another grueling year of war.
