Merz threatens to block EU budget unless agreement is reached on Ukraine funding – FT

Germany has declared it will veto the EU's next long-term budget unless every member state contributes to funding Ukraine's defense efforts. Chancellor Friedrich Merz wrote to European Council President António Costa that his support for the 2028-2034 budget hinges on all 27 countries committing to cover Ukraine's financial shortfall, which now stands at €70 billion for the following year, according to the Financial Times.

This puts pressure on a few nations that have so far refused to pay their share, despite intelligence warnings that Russia may be planning to escalate its aggression towards European countries.

The €70 billion gap emerged after EU leaders agreed to a €90 billion loan for Ukraine in December. However, Kyiv has stated it requires an additional €70 billion to continue its fight. The EU has pledged to cover about two-thirds of this amount, or roughly €45 billion, and is exploring options such as fresh joint borrowing. Merz emphasized that resolving this issue and discussing any matters with financial implications, such as future funding, is "an essential prerequisite for the EU budget."

Four countries—Hungary, Slovakia, Bulgaria, and the Czech Republic—have indicated they will not contribute to further aid for Ukraine. Three of these nations already received an opt-out for the interest payments on the €90 billion loan last year. While Germany is the largest net contributor to the EU budget, it is using this leverage to push for a more equitable distribution of the burden.

Merz also proposed that future funding for Ukraine should require a qualified majority vote instead of unanimity to prevent potential vetoes from countries like France's Marine Le Pen, who has indicated she would end support for Ukraine beyond limited operational aid if elected. The political landscape is becoming increasingly contentious, with elections in Italy and Poland potentially further weakening the consensus on Ukraine aid.