Merz warns EU budget deal hinges on securing funding for Ukraine

German Chancellor Friedrich Merz warned on Tuesday that his support for the EU's next multi-year budget hinges on securing long-term funding for Ukraine, reported dpa.

"Our Ukraine policy must be fully reflected in the European budget," Merz told a joint press conference with Hungarian Prime Minister Péter Magyar in Berlin.

Merz said he expected "significant changes" when European Council President António Costa presented a new proposal for the bloc's 2028-34 budget, which is under negotiation.

"Without these changes, the negotiations cannot be concluded any time soon," he said.

Defence and competitiveness must take precedence in the budget, with spending on other areas reduced, Merz also demanded.

His remarks followed a letter to Costa in which he tied progress in the EU budget negotiations to securing funding for Ukraine for the years ahead.

Merz also urged Costa to prioritize additional immediate financial aid for Ukraine at Friday's informal EU summit in Dublin to help close Kiev's funding gap.

The European Commission estimates Ukraine's funding shortfall for next year at €70 billion ($78.6 billion), with the EU expected to cover €45 billion. A €90 billion package approved last year for 2026 and 2027 falls short of the country's needs.

Merz: Ukraine aid is a European responsibility

Merz said a shared understanding of how Europe would support Ukraine in future was another prerequisite for concluding the budget negotiations.

"This is a shared European responsibility, not a task for individual member states," he said. "That is why the question of how we finance Ukraine in the coming years, if necessary, naturally belongs in these budget negotiations."

Germany is the largest contributor to the EU budget and one of Ukraine's biggest financial backers.