Latvia backs Germany's budget ultimatum as Ukraine funding gap looms

Latvian Prime Minister Andris Kulbergs endorsed German Chancellor Friedrich Merz's proposal to make the European Union's seven-year budget contingent on member states funding Ukraine. Speaking on November 12, 2026, ahead of a summit in Dublin, Kulbergs described Merz's demand as the perfect strategy for ensuring collective action.

Merz's position centers on a projected 70 billion euro shortfall in Ukraine's funding needs for 2027. The German Chancellor sent a letter to European Council President António Costa, stating that Germany would only support the EU budget for the period 2028 to 2034 if all member states agreed to provide financial assistance to Ukraine.

Kulbergs stated that Baltic states currently allocate 0.25 percent of their national budgets to support Ukraine annually. He noted that the region wishes to contribute more if economic capacity allows and argued that every European nation must participate because continental security is directly tied to events in Ukraine.

The proposal has faced resistance from several Eastern European leaders. Slovak Prime Minister Robert Fico characterized Merz's letter as an act of blackmail. Hungarian Prime Minister Péter Magyar argued that the approach was not right, while Czech Prime Minister Andrej Babiš stated that future Ukraine funding should not be a precondition for approving the EU budget.

Kulbergs addressed these dissenting voices by describing the non-participatory stance as inconsistent with the generally accepted approach to European security. He pointed out that only a few countries hold this position, viewing it as a deviation from the common consensus among member states.

The Latvian Prime Minister suggested that if a country seeks agreement on the EU budget but refuses to support Ukraine, it creates a disconnect in European security policy. He emphasized that having only a couple of countries in this position does not reflect a common approach, reinforcing the need for alignment.

European leaders are gathering in Dublin for the European Political Community summit to discuss these tensions. The positions taken by Kulbergs, Merz, and their counterparts will determine the final terms of the upcoming multi-year financial framework and the level of support Ukraine receives from its partners.