Germany's Merz asks EU to prioritize new Ukraine loan talks

The November 26-27 meeting was prepared to discuss the EU's multiannual 2028-2034 budget, and the Financial Times has reported that Merz threatened to block agreement on the budget until financing for Ukraine is resolved. Merz's letter, however, issues no ultimatum. On the budget it says only that "we must then find a solution supported by all Member States that ensures a sound and multiannual financing perspective for Ukraine from 2028 onwards, including the interest liabilities that have already accrued."

Merz emphasized Europe's "shared vital interest" in supporting Ukraine against Russia. "Providing this support is an indivisible responsibility shared by us all," he said, adding that "bilateral assistance to Ukraine is distributed unevenly and carried mostly by only a few Member States." Germany is the largest financial contributor to Ukraine in the EU, though it is also by far the EU's largest member state; on a per capita basis, several countries give more to Kyiv.

Merz referred to a previous push by Berlin to "provide Ukraine with a multiannual financing perspective... that would have made it unnecessary for the European Council to revert to this issue so soon." That refers to his advocacy in 2025, also via the Financial Times, to pressure Belgium to allow the EU to expropriate 200 billion euros of immobilized Russian assets, a plan that ultimately failed. EU diplomats told the Kyiv Independent the focus is now purely on reaching agreement on a new loan.