German Chancellor Merz threatens to block EU budget unless four holdouts — Hungary, Slovakia, Bulgaria, and the Czech Republic — commit to funding Ukraine

German Chancellor Friedrich Merz has threatened to obstruct the adoption of the EU's 2028–2034 budget unless all member states pledge ongoing financial backing for Ukraine, according to the Financial Times, citing a letter he addressed to European Council President António Costa. The EU initially allocated €90 billion in loan support to Ukraine in spring 2026, but Kyiv will require an additional €70 billion in external financing by 2027.

The EU has committed to funding two-thirds of that amount, approximately €45 billion. However, Hungary, Slovakia, Bulgaria, and the Czech Republic have announced their unwillingness to provide further financial aid to Kyiv. In his letter, Merz urged EU leaders to "reach a solution endorsed by all Member States that guarantees a robust and multiannual financing outlook for Ukraine from 2028 onwards."

Germany is the largest net contributor to the EU budget, whereas Hungary, Slovakia, Bulgaria, and the Czech Republic are net beneficiaries, receiving more from the bloc's budget than they contribute. Several EU nations, such as France, Italy, and Poland, are set to hold elections next year, potentially complicating discussions on financial support for Ukraine.

Notably, French presidential candidate Marine Le Pen, currently leading in public opinion polls, has already vowed to cease financial aid to Ukraine if she secures the presidency. Additionally, Europe and Ukraine's EU approved a substantial loan to Ukraine and sanctioned Russia for the 20th time after Hungary withdrew its opposition.

Germany's covert 'Sonderstab Ukraine' expedited weapons deals for Kyiv in as little as two weeks, as reported by the Financial Times.