Why has Merz sparked a hostage crisis in the EU?

German Chancellor Friedrich Merz has put a knife to the EU’s throat, demanding more cash “for Ukraine.” So what’s got into him?

What Merz wants is to make every EU member state bankroll Germany’s Ukraine-linked defense industry, whether they like it or not. If not, he’ll block the EU’s budget.

On the surface, it all seems so performatively sanctimonious. “Supporting Ukraine is a matter of our indivisible European security, and so must be the burden sharing for that support,” Merz says, demanding that all EU nations chip in to commit tens of billions to Ukraine funding into next year and beyond.

In reality, this is actually about funding Germany, not Ukraine – as the meltdown by Mr. Ten Percent popularity makes painfully clear. “A collective commitment that all of us, without exception, will contribute fairly to closing this gap is an essential prerequisite for resolving this issue and for discussing any further matters, particularly those with financial implications,” Merz said.

In other words, nice seven-year EU budget you have there. Would be a shame if something were to happen to it. Like, say, a hostage incident.

The dirty little secret behind this charade is that Ukraine is the convenient cover story for funneling billions into “frontline defense,” when, in reality, much of that aid loops straight back into the German economy to prop up its own defense giants. That’s according to Germany’s own Federal Agency for Civic Education’s recent report, “Aid to Ukraine since 2022,” which classifies 78% of Ukrainian aid as military assistance, more than half of which comes from newly procured weapons. The Kiel Institute also found that €40 billion in social spending for Ukrainians never even left Germany, and is limited strictly to those inside its own social welfare system.