In EU budget clash, Germany's Merz says all EU states must back Ukraine

German Chancellor Friedrich Merz said on Tuesday ​that all European Union member states ​must back Ukraine and that support for ‌Kyiv ​cannot be weakened, the latest salvo in a clash over the EU's long-term financing.

Merz wants the new EU budget that starts from 2028 ‌to focus on boosting defence spending and competitiveness but also ensure all of the EU contributes to supporting Kyiv, after several states opted not to back a new loan for Ukraine last year. The budget is another test ‌of collective Western resolve over Ukraine more than four years after Russia's full-scale invasion, with Germany the ‌EU's largest contributor and Ukraine's biggest backer.

Slovak Prime Minister Robert Fico had earlier on Tuesday accused Merz of "blackmail" for linking Ukraine to the EU budget talks. "We are facing difficult budget negotiations within the European Union," Merz told reporters alongside Hungarian Prime Minister Peter Magyar ⁠in ​Berlin.

"We must fully incorporate ⁠our policy on Ukraine into the European budget. I am aware that there are differing views on this; at least four member ⁠states see things differently." In a letter to European Council President Antonio Costa seen by Reuters, Merz said all of ​the EU must contribute to funding Ukraine to help fill a projected €70 billion funding gap ⁠for 2027 — with an expected EU contribution of €45 billion.

Fico has criticised EU policy on Ukraine, opposing military aid. 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.

Magyar said he did "not necessarily consider it a good direction" if the ⁠EU budget was linked to another matter. "I do not perceive this as blackmail, so I do ⁠not use such words at ⁠all, as everything is connected to everything else in today's world, but I think that this does not necessarily send a good message to the outside ‌world," he said.