Merz clashes with Fico over German bid to link EU budget and Ukraine loan

German Chancellor Friedrich Merz has advocated for integrating the EU's upcoming budget with a multibillion-euro Ukraine loan, despite Slovak Prime Minister Robert Fico dismissing the demand as "classic blackmail." Merz emphasized during a press conference with Hungarian Prime Minister Péter Magyar that supporting Ukraine is a shared European responsibility, not the obligation of individual member states.

Therefore, discussing how to finance Ukraine in the coming years should be part of these budget negotiations. This stance has sparked controversy, with Fico stating that Merz's approach is "classic blackmail" during a meeting with Czech Prime Minister Andrej Babiš. The EU and its partners are currently negotiating a new €70 billion loan to aid Ukraine in the next year, with the EU contributing approximately €45 billion, while other allies such as Britain, Canada, and Japan are expected to cover the remaining €25 billion.

Merz criticized the previous €90 billion loan to Ukraine, which was only approved with financial guarantees and liabilities from most EU countries, while three nations—Czechia, Hungary, and Slovakia—obtained an exemption. Merz argued that continuing this approach is not advisable and that Ukraine policy should be fully integrated into the EU budget.

However, Magyar disagreed, noting diplomatically during their meeting in Berlin that this approach might not be the right strategy for the seven-year EU budget intended for Europe.