Merz calls on Europe to strengthen unity and competitiveness to counter power politics
Kyiv • UNN
German Chancellor Friedrich Merz stated at the World Economic Forum in Davos that Europe must strengthen its unity and competitiveness. This is necessary to counter a new era of "great power politics" that has upended transatlantic relations.
German Chancellor Friedrich Merz stated that Europe must strengthen its unity and competitiveness to counter a new era of "great power politics" that has upended transatlantic relations, writes UNN with reference to Bloomberg.
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"The international order of the last three decades, based on international law, has always been imperfect," Merz said Thursday in his speech at the World Economic Forum in Davos. "Today, its foundations have been shaken."
Tensions at the annual meeting of global business leaders and politicians eased on Wednesday after US President Donald Trump sharply reversed course on his threat to impose additional tariffs on several European countries that had hindered his efforts to seize control of Greenland, a semi-autonomous Danish territory.
On Wednesday, Trump mentioned "the framework of a future agreement," but it is unclear what this agreement would entail. Denmark has repeatedly ruled out negotiations on transferring the semi-autonomous island to the US.
Merz advocated a more measured response to Trump's tariff threat than French President Emmanuel Macron, who raised the issue of activating the European Union's so-called anti-coercion instrument. But Merz said earlier this week that Germany's greater reliance on exports means it is less willing to deploy the bloc's strongest trade countermeasure.
"New tariffs would undermine the foundations of transatlantic relations," Merz said. "Europe's response would be united, calm, measured, and firm."
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Following Trump's threats, the European Union suspended its trade agreement with the US, which many in the bloc already considered unfair. This agreement, which was concluded last summer, allowed the bloc to abolish almost all tariffs on American products, while approving a 15% tariff on most exports to the US and 50% on steel and aluminum.
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Details of Trump's so-called framework agreement on Greenland were vague. Denmark earlier on Wednesday ruled out the possibility of negotiations on transferring the semi-autonomous island to the US.
Danish Prime Minister Mette Frederiksen stated that her country is ready for negotiations "on all political issues - security, investments, economy. But we cannot negotiate on our sovereignty."
NATO Secretary General Mark Rutte told Bloomberg in an interview at the World Economic Forum that his discussions with Trump focused on Arctic security in a "practical sense" and how to prevent Russia and China from accessing the semi-autonomous Danish territory.
Merz also emphasized the need for Europe to become more economically competitive and create a better environment for domestic businesses to thrive. The German leader will meet with Italian Prime Minister Giorgia Meloni to outline priority areas of work.
Merz said they would propose an "emergency brake" for bureaucratic processes and a modernization of the EU budget to make the bloc more competitive. He argued that Europe's geopolitical influence depends on the continent's economic momentum.
"I will push for rapid progress, particularly on the capital markets union," he said. "We cannot allow our European leaders to continue to depend on US capital markets."
He also emphasized the need to expand the EU's trade alliances and "strategic" coordination of ties around the world. Merz criticized the European Parliament, which on Wednesday voted to submit a new Mercosur trade agreement for legal review, vowing that the agreement "will not be stopped."
But the struggle for Greenland and the tariff threat, the publication writes, "have lowered transatlantic relations to a new low." EU leaders will meet in Brussels on Thursday to discuss the recent damage to transatlantic relations and ways forward.
"Democracies have no subordinates," Merz said. "They have allies, partners, and trusted friends."