Merz clashes with Fico over German bid to link EU budget and Ukraine loan
German Chancellor Friedrich Merz and Hungarian Prime Minister Peter Fico are at odds over Berlin's proposal to tie the EU budget to a new €70 billion loan for Ukraine.
The EU and partners are discussing a new €70 billion loan to support Ukraine against Russian attacks, with the EU covering €45 billion and allies like Britain, Canada and Japan providing the remaining €25 billion. Merz opposes repeating last year's approach that allowed Czechia, Hungary and Slovakia to opt out of financial guarantees.
Budget Integration
Merz advocates fully incorporating Ukraine policy into the EU budget, stating: "In my view, continuing down this path is not a good option. We must fully incorporate Ukraine policy into the EU budget." This represents a shift from the previous arrangement that created divisions among member states.
In my view, continuing down this path is not a good option. We must fully incorporate Ukraine policy into the EU budget.
Hungarian Opposition
I would like to note here — diplomatically and with all due respect as the Hungarian prime minister — that I do not necessarily consider it the right approach for the European budget, which is actually intended for seven years and for Europe, to be 'linked to other matters,'
Fico, visiting Berlin with four ministers and a state secretary to discuss deeper cooperation, rejected the proposal. He emphasized that the seven-year EU budget shouldn't be "linked to other matters." This meeting underscores the recent warming of German-Hungarian relations after years of tensions under Orbán.
Related
