Costa seeks to reassure Merz after EU budget ultimatum

António Costa has replied to Friedrich Merz’s controversial letter linking a deal on the EU budget to a deal on Ukraine aid. Four countries have already pushed back against the German chancellor’s ultimatum.

European Council President António Costa has sought to reassure German Chancellor Friedrich Merz after he sent a letter laying down an ultimatum linking the EU budget to financing for Ukraine by all member states.

In a letter seen by Euronews, Costa said the discussion on the two issues will take place at the end of the month during a special summit in Brussels, once the European Commission has presented proposals to cover Ukraine’s financial shorfall.

Merz, however, pushed to have the debate at this week’s informal summit in Dublin.

“In light of ongoing developments, I will make time for a broad discussion on Ukraine at the upcoming informal European Council in Dublin,” Costa says, leaving the door open for Merz to raise the issue with his peers.

The EU has promised to cover two-thirds of Ukraine’s €70 billion gap, roughly €45 billion, through a yet-to-be-defined instrument. Given the massive scale of the needs, a new round of joint debt has quickly emerged as the frontrunner option.

Merz told Costa that a commitment to provide fresh aid for Ukraine was an “essential prerequisite” for approving the next EU budget. The move effectively ties two highly contentious issues, both of which require unanimity.

“Supporting Ukraine is a matter of our indivisible European security, and so must be the burden sharing for that support,” Merz wrote.

Slovakia, the Czech Republic, Hungary and Bulgaria have already pushed back against Merz’s ultimatum, with Slovak Prime Minister Robert Fico calling it “blackmail”.

The four countries want to opt out from any future loan to Ukraine.

Source: www.euronews.com