As the Financial Times newspaper reports, German Chancellor Friedrich Merz is threatening to block the European Union budget for 2028-2034 if individual members of the bloc refuse to finance Ukraine.
The publication, citing Merz's letter to European Council President Antonio Costa, states that the chancellor warned he would block the next seven-year EU budget if all member states do not commit to providing financial support to Ukraine.
The newspaper links this statement to the meeting of European leaders in Dublin due this week. Merz insists that the problem of the shortage of funds for Kyiv should be resolved on the sidelines of this meeting. Kyiv, for its part, says additional financing is needed for its budget deficit, which is estimated at 70 billion euros next year. The EU promised to cover two-thirds of this sum, and the European Commission is now working out options for fulfilling the promise.
The publication notes that Hungary, Slovakia, Bulgaria and Czechia have already announced their refusal to provide further financial assistance to Kyiv. In this connection, Merz indicated in the letter the need to find a solution that all member states will support in order to ensure a long-term prospect for financing Ukraine from 2028. He also noted that this solution must include the payment of interest on existing debt related to Kyiv.
The European Commission previously presented a draft new seven-year EU budget for 2028-2034 worth about two trillion euros, providing for increased spending on defense, competitiveness and support for Ukraine. The proposals caused disagreements among EU countries over the size of the budget, the allocation of funds and the introduction of new sources of revenue.
Ireland, which holds the presidency of the EU Council, adjusted the proposal, cutting the budget by 160 billion euros in current prices. However, Germany and other donor countries that demand budget cuts do not agree even with this option, insisting on further reductions. Adopting the multiannual financial framework requires a unanimous decision of the EU states and the consent of the European Parliament.
Russia has repeatedly stated that continued Western financing and arming of Ukraine prolongs the conflict and hinders its diplomatic settlement.