‘We have entered a time of great power politics’: Germany’s Merz tells Davos

German Chancellor Friedrich Merz has warned that the world has entered a new era of great-power politics, arguing that the foundations of the post-Cold War international order have been severely shaken.

Speaking at a keynote address, Merz cited Russia’s war against Ukraine, China’s rise, and a shift in U.S. foreign and security policy as signs of a more power-driven global system.

He urged Europe to respond with “clear-eyed realism”, while rejecting fatalism and stressing the importance of alliances.

Key points from Merz’s address:

• Europe must massively increase defence spending and improve economic competitiveness

• The transatlantic alliance and NATO remain vital despite recent tensions

• A world driven solely by power risks instability for small, middle, and great powers

• Europe should expand global trade ties and oppose arbitrary tariffs

Merz also called for swift implementation of the European Union–Mercosur trade agreement, criticising delays and saying there is “no alternative” to the deal.

ℹ️ World Economic Forum, POLITICO