Costa Responds to Merz After EU Budget and Ukraine Aid Ultimatum
President of the European Council António Costa stated that the EU budget and Ukraine aid will be discussed at a special summit in Brussels at the end of the month.
Costa responded to a letter from German Chancellor Friedrich Merz, who demanded linking the approval of the next EU budget with an agreement on new aid for Ukraine. Merz wanted to discuss this issue at the informal meeting of European leaders in Dublin this week.
Costa stated that a thorough discussion of the situation around Ukraine will still take place in Dublin. He proposed addressing the main decisions on the budget and funding for aid at a special summit in Brussels at the end of the month—after the European Commission presents options for covering Ukraine's financial deficit.
The EU has committed to covering two-thirds of Ukraine's budget deficit, amounting to 70 billion euros. This totals approximately 45 billion euros. The specific financial mechanism has not yet been determined, but new joint borrowings have become the most likely option.
In his letter, Merz described the commitment to provide Ukraine with additional aid as a key precondition for approving the next EU budget. Both issues require unanimous consent from member states, so the Chancellor effectively linked the budget decision with the distribution of costs for supporting Ukraine.
According to Merz, aid to Ukraine pertains to overall European security, and the financial burden should be shared among all EU countries.
Slovakia, the Czech Republic, Hungary, and Bulgaria have already opposed this approach. Slovak Prime Minister Robert Fico called the Chancellor's demand blackmail. These four countries are also seeking exclusion from any future loans for Ukraine.
