Estonia, the next country to chair European Union meetings, opposes punishing eastern EU states that refuse to host refugees by pulling their funds.
Interior Minister Andres Anvelt told Reuters that such a move divided Europe rather than united it.
"I don't think any punishing through budget or through some financial punishment is good because we understand Europe is a family of very different countries," he said in a telephone interview from Tallinn.
"We have to look very much into the future not to break something. We don't need any more exits, it would make the European Union weaker."