Slovak PM Fico accuses Merz of 'blackmail' for linking Ukraine funding to EU budget talks

Slovak Prime Minister Robert Fico accused German ​Chancellor Friedrich Merz of "blackmail" on Tuesday ​after Berlin pushed to ‌link a ​deal on funding for Ukraine to talks on the European Union's next long-term budget. Merz, in a letter ‌to European Council President Antonio Costa seen by Reuters, said all of the EU must contribute to funding Ukraine as it defends itself against Russia's invasion.

He said a ‌commitment that all EU members would help Ukraine fill a projected €70 billion ‌funding gap for 2027 — with an expected EU contribution of €45 billion — was a prerequisite for "discussing any further matters, particularly those with financial implications". Addressing that, Fico said: "We must respond to blackmail."

"We have ⁠the ​same veto as ⁠the German Federal Chancellor," he added. Fico has criticised EU policy on the war in Ukraine, opposing military ⁠aid and keeping cordial ties with Russia, even as other EU leaders have isolated Moscow ​for its 2022 invasion.

Czech Prime Minister Andrej Babis, alongside Fico, said blocking ⁠the EU budget would also block money earmarked for Ukraine. The EU is negotiating its next seven-year ⁠budget, ​to run from 2028. Merz's move was seen as an attempt to use Germany's status as the budget's biggest contributor to pressure countries reluctant to ⁠sign up for more support for Ukraine.

Last December, the EU agreed a €90-billion loan ⁠for Ukraine. Slovakia, the ⁠Czech Republic and Hungary opted out and have signalled they will not take part in any new loan.