Costa sets out EU talks on Ukraine funding after Merz links support to budget deal

European Council President António Costa has promised time for a broad discussion of Ukraine at an informal EU summit in Dublin on 13 November, responding to German Chancellor Friedrich Merz in a letter. Ukraine's financial needs for 2027 will also be considered at a special summit in Brussels on 26 and 27 November.

Costa's response follows a move by Merz to tie Germany's backing for the EU's next long-term budget to an agreement on financing Ukraine. As European Pravda previously reported, the German chancellor told Costa in a letter that all EU member states must agree to provide funding for Ukraine for Germany to support the bloc's budget for 2028 to 2034.

Ukraine faces a funding shortfall of €70 billion in 2027. Merz's proposed condition connects an agreement on addressing Ukraine's financing needs with approval of the EU's subsequent seven-year budget, an approach that has drawn criticism from the leaders of Slovakia, Hungary and Czechia.

In his reply, Costa confirmed plans for wide-ranging talks on Ukraine at the Dublin gathering. He referred to a response he had already sent to Italian Prime Minister Giorgia Meloni, who had written to ask him to determine who would represent the EU in peace negotiations concerning Ukraine.

Costa said he had told Meloni that the informal European Council meeting would include time for a broad discussion of Ukraine, particularly in light of ongoing developments. His letter to Merz reiterated that intention while identifying the later Brussels summit as an occasion to consider Ukraine's financial requirements for the coming year.

The special summit in Brussels will concentrate on two subjects, according to Costa: the EU's next multiannual financial framework and Ukraine's funding needs for 2027. He said the European Commission was expected to present its proposal on Ukraine's financing requirements before leaders meet.

Slovak Prime Minister Robert Fico characterised Merz's letter as "blackmail". Hungarian Prime Minister Péter Magyar also criticised the proposed link between approval of the seven-year EU budget and support for Ukraine, saying it was not the right approach.

Czech Prime Minister Andrej Babiš likewise said that agreement on Ukraine's future financing could not be a prerequisite for adopting the EU's next seven-year budget. Hungary, Czechia and Slovakia are not participating in the €90 billion loan being provided to Ukraine in 2026 and 2027.