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Politics EuropePolicy Checking in progress Published 9 November 2026 · Updated 9 Nov, 21:50 UTC

Merz threatens to block the EU's next budget unless every member state commits to funding Ukraine

German Chancellor Friedrich Merz has warned that Germany will block the European Union's next seven-year budget unless every member state commits to sharing the cost of funding Ukraine, in a letter dated 6 November to European Council President António Costa, first reported by the Financial Times. Ukraine faces a funding gap of about €70 billion next year; the EU is preparing to cover about €45 billion of it, while Hungary, Slovakia, Czechia and Bulgaria have ruled out contributing. The budget itself, for 2028 to 2034, needs every member's agreement. No budget has been blocked — this is a stated condition, set out before EU leaders meet in Dublin this week.

German Chancellor Friedrich Merz (file photo)
Photo: Guamedo1234 via Wikimedia Commons (CC BY 4.0) · (File photo — not from this event)

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Key points

  • Merz's letter of 6 November ties Germany's support for the EU's 2028–2034 budget to every member state funding Ukraine — the budget needs unanimity, so the threat can block it.
  • Ukraine's 2027 funding gap is about €70 billion; the EU is preparing about €45 billion of it.
  • Hungary, Slovakia, Czechia and Bulgaria have ruled out contributing; the first three already opted out of the ongoing €90 billion loan.
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  • EU leaders take up Ukraine's financing in Dublin this week and again at a special council on 26–27 November.
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What happened

The EU's long-term budget is agreed by all 27 members together, which gives any one government a veto — and gives Germany, the bloc's largest net contributor, particular weight when it chooses to use it.

The immediate argument is about 2027: Kyiv needs about €70 billion of outside financing next year, and the argument over who pays has been running since the €90 billion loan was agreed with opt-outs for the countries that refused to join it.

What we know / what we don't know yet

What we know

  • What Merz's letter says, in its own quoted words: German support for the 2028–2034 budget is conditional on a collective commitment to fund Ukraine.
  • The size of Ukraine's 2027 gap (about €70 billion), the EU's planned share (about €45 billion), and the four states that have ruled out contributing.

What we don't know yet

  • Whether Hungary, Slovakia, Czechia and Bulgaria will agree to contribute — none had answered the letter in the reporting read.
  • Whether Germany would in the end block the budget, and what a compromise would look like.
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Claim by claim

4 verified· 0 disputed· 0 not yet verified· 0 corrected
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Verified
In a letter dated 6 November to European Council President António Costa, also sent to European Commission President Ursula von der Leyen, Chancellor Friedrich Merz made Germany's support for the EU's next long-term budget — the Multiannual Financial Framework for 2028 to 2034 — conditional on all member states committing to fund Ukraine. He wrote: 'A collective commitment that all of us, without exception, will contribute fairly to closing this gap is an essential prerequisite for resolving this issue and for discussing any further matters, particularly those with financial implications.'

Why this label: The letter was first reported by the Financial Times and seen by Rapporteur, whose account carries the quoted wording; Meduza's report of the same letter, citing the FT, agrees on the condition and the addressees. The budget requires unanimity, so a German refusal would block it.

On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.

Verified
Ukraine faces a funding gap of about €70 billion in 2027. The EU is preparing to finance about €45 billion of it — roughly two-thirds. Hungary, Slovakia, Czechia and Bulgaria have all ruled out contributing. The first three of those countries already hold an opt-out from the EU's ongoing €90 billion loan for Ukraine, whose interest payments the other 24 members share among themselves.

Why this label: The gap, the EU's €45 billion share and the four holdouts are stated in the same terms by Rapporteur and Meduza; the €90 billion loan opt-out and interest arrangement are Rapporteur's account of the letter's context.

On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.

Verified
Merz asked that Ukraine's financing be discussed by EU leaders at their meeting in Dublin this week, and a spokesperson for Costa confirmed it will be raised there; Ukraine financing is also on the agenda of the special European Council on 26–27 November. Merz also argued the next budget should itself carry a solution, supported by all member states, that secures Ukraine's financing from 2028 onwards, including interest already owed on past loans.

Why this label: The Dublin request and the Costa spokesperson's confirmation are reported by Rapporteur; the 2028-onwards budget argument is Merz's, as quoted from the letter.

On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.

Verified
Germany is the largest financial contributor to Ukraine among EU states, at close to €31 billion since the start of the war, according to the Kiel Institute — though as a share of GDP it ranks only ninth among EU countries. Support for Ukraine is carried mostly by only a few member states, Merz complained in the letter, and bilateral assistance is unevenly spread across the 27.

Why this label: The €31 billion total and the GDP-share ranking are the Kiel Institute's figures as reported by Rapporteur; the uneven-burden complaint is Merz's own position in the letter, carried as such.

On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.

Why it matters

Merz is using the one lever no member can ignore — the budget itself — to end the arrangement under which a handful of countries carry Ukraine's financing while others opt out. Whether the four holdouts move, or call his bluff, will shape both the EU's budget and Ukraine's war funding.

Background

  • The EU approves a €90 billion loan for Ukraine; Hungary, Slovakia and Czechia secure an opt-out, and the other 24 members share the interest costs.

  • Merz writes to Costa and von der Leyen making Germany's support for the next EU budget conditional on all members funding Ukraine.

  • EU leaders meet in Dublin, where Ukraine's financing will be raised; a special European Council follows on 26–27 November.

Update history

No silent edits. Every change is written here, with its time.

  • Latest

    Published in Checking state — Merz's condition is set out in his letter, and the four holdout states' answers, and the Dublin discussion, are still to come.

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