EU Will Need to Increase Ukraine Funding to Plug Gap: Merz

German Chancellor Friedrich Merz has warned that the European Union will need to increase its funding for Ukraine to plug a budget gap, as Kyiv faces a severe shortfall in the coming year. Speaking at the onset of a two-day summit of EU leaders in Brussels, Merz emphasized the importance of helping Ukraine through the winter and into the next year.

The summit aims to address budget talks and provide lasting assistance to Ukraine. President Volodymyr Zelensky is expected to join the meeting on Friday to rally support amid escalating tensions with the United States. Ukraine's dire situation is exacerbated by intensified Russian bombardments and strained relations with Washington due to Trump's deal with Russia to supply diesel fuel.

The EU, which has committed a 90-billion-euro loan to Kyiv until the end of 2027, acknowledges the need for additional funds as Moscow's strikes have severely impacted the country's economy. While the European Commission works to determine the precise amount required, discussions have reignited debates over utilizing around 200 billion euros in frozen Russian central bank assets.

However, progress on this front appears limited, as Belgium, where most of the funds are held, opposes the idea. Chancellor Merz vehemently opposes any attempt by the United States to transfer these frozen assets as part of Washington's peace negotiations with Moscow, asserting that they remain Europe's business and will be decided by European leaders.