RMF241 hour agoPolitics1 min read

Merz threatens to block the EU budget. It's about support for Ukraine

Quick Look

German Chancellor Friedrich Merz called for a solution supported by all EU countries that would provide Ukraine with reliable and long-term financing from 2028.
In the spring of 2026, the EU approved a loan of EUR 90 billion for Kiev, and in 2027 Ukraine will need additional EUR 70 billion in external financing, of which the EU has declared to cover two thirds (approx.
EUR 45 billion).

AI-generated summary

Why It Matters

Germany is the largest net contributor to the EU budget, which means that it contributes more funds to it than it receives. In the spring of 2026, the European Union approved a loan of EUR 90 billion for Ukraine. According to information from the Financial Times, Kiev will need additional EUR 70 billion in external financing in 2027, of which the EU has declared to cover two thirds of this amount, i.e. approximately EUR 45 billion.

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Merz was to present his position in a letter to the President of the European Council, António Costa. The German Chancellor called for a solution supported by all member states that would provide Ukraine with a "credible and multi-annual financing perspective" from 2028.

Germany is the largest net contributor to the EU budget. This means that they pay more into it than they receive from it.

In the spring of 2026, the European Union approved a loan of EUR 90 billion for Ukraine. However, according to information from "FT", Kiev will need an additional EUR 70 billion in external financing in 2027.

The EU has pledged to cover two thirds of this amount, i.e. approximately EUR 45 billion.

Four countries against further support

However, Hungary, Slovakia, Bulgaria and the Czech Republic were to signal that they did not intend to provide further financial assistance to Ukraine.

Talks about future support may further complicate elections planned next year in several EU countries, including France, Italy and Poland. The Financial Times points out that the French presidential candidate, Marine Le Pen, who is leading in the polls, has already announced that she will end financial support for Ukraine after a possible victory.

What to Watch

AI outlook — possibilities, not facts

The European Union will decide on the long-term financing of Ukraine after 2028 in the coming months.
Likely · Within months
The presidential elections in France will influence the country's position on further financial support for Ukraine.
Likely · Within months

Open Questions

What exactly is the financial solution that Merz proposes in his letter to António Costa?
Will other EU countries support the German Chancellor's proposal?
What will be the consequences for Ukraine if additional financing is not provided in 2027?
Will the elections in France, Italy and Poland influence the final position of these countries regarding support for Ukraine?