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European Union

Merz says Germany may block EU budget unless all states fund Ukraine

Germany's conditional stance could stall the bloc's next seven-year budget, with Ukraine facing a large funding gap next year.

Photo: Stephanie LeBlanc, Unsplash

What happened

German Chancellor Friedrich Merz said German backing for the EU's next seven-year budget will be conditional on every member state contributing to financial support for Ukraine. Bloomberg+1 In a letter to European Council President Antonio Costa, Merz wrote that bilateral assistance to Ukraine is distributed unevenly and carried mostly by only a few member states. Bloomberg Berlin wants governments to agree a durable funding arrangement for Kyiv, including covering the cost of servicing Ukraine-related debt. Euronews

Around it

Ukraine faces a funding gap of €70 billion ($78.4 billion) next year. Bloomberg+1 Merz's position could open a new front in already fraught negotiations over the multi-annual financial framework. Euronews

Sources

  1. BloombergMerz Says Germany May Block EU Budget Over Ukraine Funding
  2. EuronewsMerz’s budget gamble: no Ukraine funding, no EU budget

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