Merz Links EU Budget Support to Ukraine Financing

German Chancellor Friedrich Merz has made Germany’s backing for the European Union’s 2028-34 budget conditional on member states agreeing to share Ukraine’s financing burden, linking the bloc’s long-term spending plan to support for Kyiv.

In a letter dated November 6 to European Council President António Costa, Merz said all member states must contribute fairly to closing Ukraine’s funding gap. He described that collective commitment as a prerequisite for resolving the financing question and discussing other matters with financial implications. The letter also called for a multiannual financing arrangement for Ukraine from 2028, including interest liabilities on earlier loans.

Ukraine faces an estimated €70 billion financing gap in 2027. The EU is preparing to cover about €45 billion, roughly two-thirds of the shortfall, through an instrument that has not yet been defined. The financing proposal and the terms of any agreement remain unsettled.

Merz asked Costa to put Ukraine financing on the agenda at an informal European Council meeting in Dublin. Costa’s spokesperson said the president would make time for interventions on Ukraine there. A special European Council meeting on...