German Chancellor Friedrich Merz has urged every European Union country to share the cost of supporting Ukraine, linking the question to negotiations over the bloc’s next long-term budget.
His position has prompted objections from Slovakia and Hungary, exposing a disagreement over how future aid should be financed as European governments seek to settle their spending priorities for the years ahead.
Speaking in Berlin alongside Hungarian Prime Minister Péter Magyar on 10 November, Merz said that a common understanding of how Ukraine would be supported in the coming years was a precondition for concluding the budget talks. He presented the issue as a shared European responsibility rather than a task for individual countries alone.
The chancellor argued that Ukraine policy should be fully reflected in the European budget. He acknowledged that some member states disagreed and said he had discussed the issue openly with Magyar. Merz also called for greater emphasis on defence and competitiveness, while saying the overall framework must remain affordable for member states.
In a separate letter to European Council President António Costa, Merz called for all member states to contribute fairly to closing a projected financing gap for Ukraine and for a longer-term funding arrangement from 2028. He made a collective commitment an essential condition for addressing the gap and discussing other financial matters.
Different positions on funding
Slovak Prime Minister Robert Fico rejected the German position. Speaking in Bratislava alongside Czech Prime Minister Andrej Babiš, he described Merz’s approach as “blackmail” and said he would not give in to it.
Magyar took a different tone in Berlin. He questioned whether it was right to link the seven-year budget with another issue, but said he did not regard the approach as blackmail. He pointed to Hungary’s domestic financial constraints and said his country could not take on borrowing on that scale for such matters.
The Hungarian leader said member states contribute to European security in different ways. He also said Hungary had provided humanitarian help to Ukraine and was willing to continue doing so. Both leaders indicated that discussions would continue despite their differences.
They also set out different emphases for the wider budget. Merz said new priorities would mean giving less prominence to earlier ones. Magyar argued that traditional areas such as agriculture and funding intended to reduce disparities between regions should not be cut.
Two funding periods
The immediate argument concerns Ukraine’s needs before the next seven-year framework begins. Merz’s letter referred to a projected financing gap of €70 billion for 2027, with an expected EU contribution of €45 billion. Those figures describe an estimated need and an expected share, not money already paid.
EU leaders agreed a €90 billion loan for Ukraine in December 2025 to cover the 2026–2027 period. Hungary, Slovakia and the Czech Republic opted out of that arrangement and have indicated they do not intend to participate in another loan. The earlier agreement protected those three countries from financial obligations arising from the use of the EU budget as a guarantee.
The European Commission’s proposal for 2028–2034 is a separate, longer-term plan. It envisages a budget of nearly €2 trillion and says €100 billion could be mobilised for Ukraine over those seven years. Neither figure represents a final agreement on the next budget.
What happens next
The EU’s long-term budget sets limits on spending over a seven-year period; it is not a single payment made at the start. It provides a framework for programmes ranging from agriculture and regional development to external action. Individual spending programmes are then dealt with through further legislation.
Agreement on the framework requires unanimity in the Council of the EU and the consent of the European Parliament. That gives the debate over how much governments contribute, and what the money supports, significance well beyond a single meeting.
Costa’s office said leaders would have time to raise Ukraine financing at their informal meeting in Dublin that week, with the issue also due to be discussed at a budget summit on 26 and 27 November. Merz’s and his counterparts’ comments set out negotiating positions; they are not a formal veto or a completed budget deal.
