Six member states are refusing to contribute additional funding to the EU’s multiannual financial framework (MFF) for the 2028–2034 period. Alongside Ireland and Slovenia, Bulgaria, Hungary, the Czech Republic and Slovakia are also rejecting the proposed additional financing. Among the net beneficiaries, only Estonia and Latvia have so far sided with the German chancellor, while Merz has managed to secure the support of just three net contributors: Austria, Sweden and Luxembourg.
Merz is making approval of the budget conditional on member states jointly covering Ukraine’s projected funding shortfall for 2027. Of the €70 billion Ukraine needs, the EU would assume responsibility for approximately €45 billion. However, the German proposal has met with fierce resistance among member states. Slovak Prime Minister Robert Fico has gone so far as to describe the move as “blackmail,” while Czech Prime Minister Andrej Babiš has also rejected it. Hungarian Prime Minister Péter Magyar made it clear in Berlin that Budapest opposes linking the EU budget to financial support for Ukraine. Bulgarian Prime Minister Rumen Radev indicated that his country would not provide a loan, although it would not block the aid package.
Ireland’s position is particularly uncomfortable for Berlin. As the country currently holding the rotating Presidency of the Council of the EU, Ireland is responsible for overseeing the budget negotiations. According to Finance Minister Simon Harris, the new aid package should be established outside the EU budget. This new arrangement would further increase the previously proposed €90 billion loan.
Merz is also pushing for cuts to the multiannual financial framework, particularly in agricultural and cohesion funding. This has brought him into conflict with Poland and Romania as well. Nevertheless, the German chancellor has asked António Costa, President of the European Council, to make aid to Ukraine a priority at the EU summit scheduled for late November. According to Merz, supporting Ukraine is a shared European responsibility.
