Fico claims Merz is blackmailing EU over Ukraine funding

Slovak Prime Minister Robert Fico accused German Chancellor Friedrich Merz of using blackmail tactics on November 10. Fico argued that Berlin is unfairly pressuring smaller member states regarding Ukraine's financial needs. The dispute centers on Germany's stance for the upcoming European Union budget negotiations.

Merz recently sent a letter to European Council President António Costa outlining Germany's position. In the document, Merz made German support for the 2028 to 2034 EU budget conditional. He required that all member states agree to contribute to Ukraine's funding. Kyiv is currently facing a 70 billion euro gap in its 2027 budget.

Fico responded by asserting that Slovakia holds the same veto power as the German federal chancellor. He stated that smaller nations must push back against what he perceives as an unfair pressure tactic. The Slovak leader emphasized the equal standing of his country in the EU decision-making process.

The disagreement builds on a previous agreement from December 2025. EU leaders then agreed to provide Ukraine with a 90 billion euro loan. However, Kyiv has since indicated that it requires an additional 70 billion euros for 2027. This growing funding gap has been acknowledged by Ukraine's allies within the European Union.

The EU has promised to cover two-thirds of the required amount, which totals approximately 45 billion euros. The European Commission is exploring options to fulfill this pledge. One possibility under consideration is the issuance of additional joint debt obligations. Brussels hopes EU leaders can reach a consensus on this deal by the end of 2026.

Four EU countries have signaled reluctance to contribute to further financial assistance for Kyiv. These nations are Hungary, Slovakia, Bulgaria, and Czechia. Last year, Hungary, Slovakia, and Czechia successfully obtained an exemption from contributing to the interest payments on the previous 90 billion euro loan. This set a precedent for their current stance.

The European Council addressed this issue at a leaders' summit held on October 15 and 16. During the meeting, the council instructed the European Commission to prepare specific proposals for covering the 70 billion euro shortfall. The directive signaled urgency in Brussels regarding the matter.

The standoff between Fico and Merz illustrates ongoing tensions within the EU regarding the distribution of financial burdens. Germany seeks to tie future budget approvals to immediate support for Ukraine. Slovakia and other dissenting members argue that their veto power should not be effectively threatened.

Negotiations continue to focus on how the EU will structure the new funding mechanism. The potential use of joint debt represents a policy shift that requires political maneuvering. The coming weeks will determine whether a compromise can be reached before the end of the year.