German Chancellor Friedrich Merz has tied agreement on the European Union’s next seven-year budget to fair contributions from every member towards Ukraine’s financing. His letter to European Council President António Costa seeks a multiannual arrangement from 2028 and a shared solution for interest liabilities. Ukraine faces a 70 billion euro budget shortfall next year, with additional EU support still being designed.
Germany’s Chancellor Friedrich Merz has made agreement on the European Union’s next seven-year budget conditional on fair participation by every member in financing Ukraine. In a letter to European Council President António Costa, who chairs the EU leaders’ body, he demanded contributions without exceptions. Merz asked Costa to prioritise the issue at the informal summit in Dublin, Ireland.[1], [2]
Ukraine faces a 70 billion euro shortfall in its 2027 budget amid Russian attacks. The EU has promised about 45 billion euros towards closing it. The instrument for that additional support remains undefined, with further common borrowing among the options. Merz wants a sound multiannual financing arrangement from 2028 and a shared solution for accumulated interest liabilities.[1]
The additional funding would supplement an existing 90 billion euro loan backed by common borrowing by 24 countries. Hungary, Slovakia and the Czech Republic secured exemptions in exchange for the required unanimity. Interest payments begin next year. Irish Finance Minister Simon Harris supported addressing Ukraine financing before serious budget talks. Polish Deputy European Affairs Minister Ignacy Niemczycki warned that linking the files could complicate agreement; Slovak Prime Minister Robert Fico called the linkage dangerous.[1]
