German Chancellor Friedrich Merz threatened to block the European Union's next seven-year budget unless every member state commits to financial support for Ukraine, the Financial Times reported on Monday.
In a letter to European Council President Antonio Costa seen by the newspaper, Merz made Germany's backing for the 2028-2034 multiannual financial framework conditional on unanimous agreement to help close Ukraine's projected €70 billion ($78.4 billion) financing gap.
"A collective commitment that all of us, without exception, will contribute fairly to closing [Ukraine's financing] gap is an essential prerequisite for resolving this issue and for discussing any further matters, particularly those with financial implications," Merz wrote, according to the daily.
The warning comes days before EU leaders gather in Dublin for an informal summit on Friday, where Merz has insisted the shortfall must be addressed. Last December the bloc agreed a €90 billion ($100.7 billion) loan for Kyiv covering 2026 and 2027, but Ukrainian officials and allies say the scale of Russia's ongoing military campaign requires far more.
The European Commission is examining options to cover roughly two-thirds of the additional need, or about €45 billion ($50.4 billion), aiming for a deal by year-end. Four EU member countries — Hungary, Slovakia, Bulgaria and the Czech Republic — have indicated they will not contribute additional funds, according to media reports.
