Merz ties EU budget to Ukraine support, alarming Eastern states

German Chancellor Friedrich Merz has proposed linking the next EU multiannual budget to unanimous support for a multi-billion euro loan to Ukraine, alarming Central and Eastern European states. Net beneficiary countries are already upset by Germany's push to reduce the future EU budget. Merz reiterated the proposal Tuesday during a meeting with Hungarian Prime Minister Peter Magyar, arguing that supporting Ukraine is a shared European responsibility. He first presented the idea in a letter to European Council President António Costa, as Ukraine faces an estimated 70 billion euro funding gap next year, with the EU planning to cover about 45 billion euros. The proposal has drawn opposition from Slovakia, Hungary, and Czechia, which declined to join the existing 90 billion euro loan, while Slovak PM Robert Fico called it "blackmail." Economy Commissioner Valdis Dombrovskis insisted any new loan should be supported by all 27 member states.