German Chancellor Friedrich Merz wrote to European Council President Antonio Costa on Nov. 9, demanding the EU prioritize a new loan for Ukraine. The letter addresses a projected budget shortfall of 70 billion euros for 2027, with 45 billion euros falling to the EU. Merz asked Costa to place this issue as a matter of priority at the upcoming informal meeting. He emphasized Europe’s "shared vital interest" in supporting Ukraine against Russia, calling it an indivisible responsibility.
Budget Stakes and Diplomatic Pressure
Merz threatened to block agreement on the EU’s multiannual 2028-2034 budget until financing for Ukraine is resolved. The Financial Times reported this threat, though the letter itself does not issue an ultimatum. Instead, it states that member states must find a solution ensuring a sound financing perspective from 2028 onwards. This includes covering interest liabilities that have already accrued. The Nov. 13 meeting in Dublin was originally focused on AI, but Italian Prime Minister Giorgia Meloni successfully lobbied to add time for peace talks discussions. Now, Merz is also asking for time to discuss financial support.
The dispute centers on uneven burden sharing, with Merz noting that bilateral assistance is carried mostly by only a few Member States. Germany remains the largest financial contributor, yet per capita contributions from several other nations are higher. Merz referenced Berlin’s failed 2025 push to expropriate 200 billion euros of immobilized Russian assets, a plan that would have provided a multiannual financing perspective. EU diplomats confirmed the assets discussion is off the table, focusing purely on reaching agreement on a new loan. However, framing support as a cost to taxpayers may tempt countries like Sweden to revisit the asset seizure idea. The core tension remains between immediate liquidity needs and long-term fiscal commitments within the bloc.
