A new dispute over who pays for European security is escalating inside the European Union. Friedrich Merz has linked approval of the bloc’s next long-term budget to all member states contributing to Ukraine’s financing, drawing resistance from Slovakia, the Czech Republic, Hungary and Bulgaria.
Robert Fico has accused the German chancellor of blackmail and threatened to use his own veto. Andrej Babiš has questioned the logic of Berlin’s pressure. Péter Magyar rejects linking the two negotiations but has avoided Fico’s language. Rumen Radev points to Bulgaria’s fiscal constraints.
The four governments oppose Germany’s demand, but their arguments differ — and they are not all rejecting every form of support for Kyiv.
Merz’s Letter Raises the Stakes
In a letter to European Council President António Costa, Merz made a collective financial commitment to Ukraine an essential condition for progress in broader budget negotiations.
Berlin wants every member state to participate, without further exemptions, in addressing Kyiv’s financing shortfall and securing a stable funding outlook from 2028.
“Supporting Ukraine is a matter of our indivisible European security, and so must be the burden sharing for that support,” Merz wrote.
The move connects Ukraine’s immediate financing requirements for 2027 with the EU’s 2028–2034 multiannual financial framework. It puts Kyiv at the center of negotiations over the bloc’s overall spending priorities.
Fico: “We Have the Same Veto”
The strongest response came from Slovakia.
Welcoming his Czech counterpart to Bratislava on Tuesday, November 10, Fico accused Merz of blackmail and argued that Germany’s economic weight did not give it greater institutional authority.
“Just as Mr Merz talks about using his veto, I can say exactly the same. We have the same veto power as the German federal chancellor,” he said.
His intervention exposes the tension between financial influence and the unanimity requirement.
The regulation establishing the EU’s long-term budget requires unanimous approval by the Council after the European Parliament gives its consent. Both Germany’s threat and Slovakia’s response can therefore affect the outcome.
Babiš: The €100 Billion Does Not Resolve the 2027 Gap
Babiš countered that the proposed EU budget already earmarks €100 billion for Ukraine.
But that argument also highlights the timing problem: those provisions concern the period beginning in 2028, while the additional financing needs under discussion arise in 2027.
Kyiv faces an estimated €70 billion shortfall next year. The EU aims to cover roughly two-thirds — approximately €45 billion to €47 billion — through an instrument that has yet to be finalized.
Fresh joint borrowing is emerging as a leading option. There is no final agreement, however, on the financing mechanism or each country’s participation.
Magyar Opposes the Link Without Breaking With Berlin
Magyar expressed his opposition after meeting Merz in Berlin.
He argued that approving the EU budget and providing additional Ukrainian financing were separate matters. Nevertheless, he declined to describe Germany’s approach as blackmail.
“I do not consider this to be blackmail. So I do not use any such words,” he said, while adding that the linkage did not necessarily send a positive message.
The Hungarian prime minister cited difficulties containing his country’s deficit and rejected fresh European borrowing commitments under the present circumstances.
He nevertheless left the door open to compromise, pointing to negotiations in Berlin, Dublin and Brussels.
Bulgaria: No New Loans, but Support Through Other Channels
Radev also invoked domestic fiscal conditions in seeking an exemption from future credit arrangements for Ukraine.
Bulgaria’s position distinguishes participation in new lending from other assistance, including energy flows.
“Bulgaria is in no way blocking the decisions at the Council level that are taken in unity for everyone to support Ukraine as they can,” he said.
The distinction is significant: refusing to join a particular financing instrument does not necessarily mean opposing European assistance altogether.
The €90 Billion Loan and the Battle Over Exemptions
The new financing would come on top of the existing €90 billion support loan for 2026–2027.
Slovakia, the Czech Republic and Hungary secured exemptions from that arrangement. Germany’s intervention signals that Berlin wants to prevent repeated reliance on the same model.
The dispute therefore concerns the future rule: whether financing a shared security priority should involve every member state or be organized through changing groups of participants.
For governments citing limited fiscal capacity, flexibility is a condition of participation. For Germany, recurring exemptions raise questions about an unequal distribution of costs.
Costa Looks for a Path to Agreement
Costa is attempting to structure the discussion without allowing the confrontation to paralyze negotiations.
According to Euronews, his response to Merz points toward a special Brussels summit at the end of the month, once the Commission has presented its proposals. He also leaves room for a broad Ukraine discussion at the informal summit in Dublin.
The negotiations now combine Kyiv’s immediate financing needs, commitments from 2028 and the distribution of costs among member states.
Despite the public confrontation, Magyar maintained that an agreement remained possible:
“We will find a solution for the EU budget. I am sure of it.”
Source: pagenews.gr