EU budget battle erupts as four countries defy Merz over Ukraine aid

The leaders of Slovakia, the Czech Republic, Hungary and Bulgaria have pushed back against German Chancellor Friedrich Merz's ultimatum to make approval of the EU's next long-term budget conditional on fresh financial support for Ukraine.

Slovak Prime Minister Robert Fico denounced the move as a "textbook case of blackmail" and threatened to wield his veto.

"We have an equal say in this matter," Fico said on Tuesday as he welcomed his Czech counterpart, Andrej Babiš, in Bratislava.

"Just as Mr Merz talks about using his veto, I can say exactly the same. We have the same veto power as the German federal chancellor."

Babiš quipped that Merz "probably doesn't realise" that the proposed EU budget already earmarks €100 billion for Ukraine. However, those funds will not become available until 2028, while Kyiv faces a €70 billion shortfall next year.

"Today will not be business as usual – not by a long shot. Today, we must respond to blackmail," Fico said, expressing his displeasure.

"What the federal chancellor is doing is a textbook case of blackmail, and I reject it. We are a sovereign country. We are the Slovak Republic. We have our own views."

Merz upped the ante in a letter to European Council President António Costa, declaring that fresh aid for Ukraine was an "essential prerequisite" for approving the next EU budget. The move effectively links two highly contentious issues, both of which require unanimity.