#Eu Budget

Warsaw has criticized German Chancellor Friedrich Merz's attempt to tie the approval of the new EU multiannual budget to mandatory funding for Ukraine by all bloc countries. Poland sees this as pressure on the Czech Republic, Slovakia, and Hungary, which are evading direct obligations to Kyiv.

Slovak Prime Minister Fico called Chancellor Merz's ultimatum on the EU budget and Ukraine financing "typical blackmail" and stated that Slovakia will not allocate a single euro to Kyiv. Berlin has linked the approval of the multiannual budget to continued aid to Ukraine after 2027.

German Chancellor Merz threatened to block the 2028–2034 EU budget if member states do not commit to long-term aid for Ukraine. Fico, Babiš, Magyar, and Radev called the initiative blackmail and threatened a veto.

German Chancellor Friedrich Merz stated in a letter to European Council President António Costa that Berlin will block the EU budget for 2028–2034 unless all bloc nations agree to fund Ukraine's 70 billion euro deficit.

EU leaders instructed the European Commission to find an additional €70 billion for Ukraine for 2027 following Zelenskyy's appeal at the summit. A new joint borrowing is considered the main option, although the cost of debt has noticeably increased.

EU member states are holding complex negotiations on the 2028-2034 long-term budget ahead of the summit, striving to bridge divisions between net donors and beneficiaries.

Seventeen EU nations signed a letter protesting proposed budget cuts for agriculture and regional development under the 2028-2034 long-term financial framework.

European Council President António Costa will conduct the annual tour of EU capitals from 25 August to 17 September. The priorities will be the long-term budget, defence, enlargement, and Ukraine support.