In brief
At a joint press conference on 10 November, German Chancellor Friedrich Merz demanded that Ukraine support be codified in the EU’s next seven‑year budget, while Hungarian Prime Minister Peter Magyar cautioned that national interests might complicate consensus. Merz warned that the EU could risk blocking the budget if member states fail to commit, highlighting the challenge of reconciling divergent views among 27 members. How the EU negotiates this push remains a key question as leaders weigh security commitments against fiscal constraints.
On 10 November, German Chancellor Friedrich Merz announced at a joint press conference in Berlin that the European Union must fully incorporate its Ukraine policy into the bloc’s next long‑term budget, arguing that future financial aid to Kyiv should be negotiated as part of the EU’s overall fiscal plan. He made the remarks in the presence of visiting Hungarian Prime Minister Peter Magyar, adding that Ukraine’s support should be a shared EU responsibility rather than left to individual member states.
Merz said the negotiations on the EU’s next seven‑year budget are entering a “critical stage”, and that any decision that reduces Ukraine aid would undermine “collective European security.” He underscored that a key condition for reaching a budget agreement is a common understanding among EU members on how to support Ukraine over the coming years, and that at least four member states have expressed different views on the issue.
Hungarian leader Peter Magyar warned that settling on a common budget would “not be easy,” given the varied national interests of the 27 member states. He stressed that Hungary would stand as a constructive partner in the negotiations but would not compromise on its own interests, particularly in protecting “traditional areas” such as agricultural and cohesion policies. Magyar also suggested that the current budget proposal still requires changes, including revisions to member states’ contributions.
Merz’s call follows a broader EU debate about how to fund Ukraine amid the ongoing war in Donbas, where the bloc has pledged substantial financial support. European officials have estimated that Ukraine may need roughly €70 billion in aid over the next few years, a figure that has become a central point of contention in the budget talks.
In a related development, Yenisafak reported that Merz has threatened to block the EU’s next seven‑year budget unless all member states commit to closing Ukraine’s projected €70 billion gap. The report suggests that Merz’s stance could pressure the European Commission to prioritize Ukraine funding in its fiscal negotiations.
Despite the urgency highlighted by German officials, the EU faces a complicated path to consensus. The European Commission’s draft budget for 2027‑2033, which was submitted in early 2026, contains provisions that many leaders argue are too modest for Ukraine’s needs. Critics point to the limited space in the next budget cycle for humanitarian, military and reconstruction aid, while some states fear that higher earmarked spending could trigger a larger overall budget ceiling.
Analysts note that Ukraine policy must be included in the European budget “for fiscal clarity and consistency,” an approach that would allow the bloc to plan spending over a multi‑year horizon. However, opponents argue that embedding Ukraine’s needs in the EU’s budget could complicate the complex negotiation process that already involves alignment on agriculture, cohesion, and social policy, which are perennially contentious among member states.
The key uncertainties hinge on how the EU will reconcile divergent position papers, the trust in shared fiscal responsibility, and whether the bloc can reach a compromise that satisfies both support for Ukraine and the fiscal limits of struggling economies. The debate will unfold over the next few weeks as the European Council convenes and the European Commission revises its draft, with the potential for a decisive veto looming if consensus cannot be achieved.
In the meantime, German officials remain firm that “Ukraine policy must be fully included in the EU budget,” while Hungarian leadership signals that national interests could shape the final agreement. The coming months will test whether the EU can combine its defense commitments with fiscal prudence to secure stability across the bloc and beyond.
