German Chancellor Merz suggests Ukraine may need territorial concessions in peace deal
German Chancellor Friedrich Merz has suggested that a future peace deal with Russia might involve Ukraine giving up some territory, marking a shift from his earlier stance that only Ukraine should decide on concessions. The comment, made to students in Marsberg, comes as Germany faces economic strain from energy disruptions and a downgraded growth outlook.
German Chancellor Friedrich Merz suggested that a future peace deal with Russia "might involve Ukraine giving up some territory," a comment that marks a departure from his earlier insistence that any decision on territorial concessions rests solely with Ukraine. Merz made the remark to students in Marsberg, North Rhine-Westphalia, according to a report by the Kyiv Post.
In December and March, Merz had stated clearly that any decision on territorial concessions rests solely with Ukraine, emphasizing that it is for the Ukrainian president and its people to decide, not the United States. The shift in tone comes as Germany faces mounting economic pressure, with growth expectations cut sharply to around 0.5% this year. Russia disrupted flows from Kazakhstan through the Druzhba pipeline, tightening supply into Germany and exposing key infrastructure such as the Schwedt refinery to disruptions.
Industry group DIHK warned that the recovery is not just weak but at risk, citing energy shortages, supply chain stress, and global competition. The European Union approved a €90 billion ($106 billion) package to cover roughly two-thirds of Ukraine’s budget and military needs through 2026-27, including €45 billion in 2026 alone. However, a projected €64 billion funding gap remains for 2027, with filling it dependent on external partners like the G7 and IMF.
Domestically, Merz is navigating a fragile landscape of slow growth, rising welfare costs, a widening budget gap, and increasing political fragmentation. The Alternative für Deutschland, a party friendly to Russia, is ready to capitalize on economic anxiety and geopolitical fatigue. The longer the war drags on, the more it tests Europe's resilience, with Moscow's strategy aimed at eroding support under economic and political pressure.