Merz: Germany Needs Stronger Europe Amidst Global Shifts & Challenges

Frankfurt, Germany – German Chancellor Friedrich Merz emphasized the need for a strong and unified Europe as the world navigates a period of profound change. Speaking at the conclusion of the FAZ Congress in Frankfurt on Friday, Merz stated, “We are indeed in a time of a very deep caesura and this some 80 years after the conclude of the Second World War.” He stressed the importance of Europeans asserting themselves on the global stage.

During a discussion with FAZ Editor-in-Chief Berthold Kohler on “Governing in Times of Epochal Change,” Merz outlined the domestic and foreign policy challenges facing Germany. He argued that the traditional economic model of the Federal Republic – reliant on inexpensive energy from Russia, components from China, global exports, and American security guarantees – is no longer viable. “I am firmly convinced that we can only overcome these challenges together,” he said.

“Threatening Escalations”

Kohler highlighted a return to great power politics, questioning whether Germany is prepared to “speak the language of power,” a concept Merz previously advocated. Merz pointed to the example of Greenland, where he believes Europe successfully demonstrated its resolve. He as well emphasized the importance of maintaining the transatlantic alliance, stating he did not want to jeopardize it unnecessarily.

Merz expressed concern over the situation in Iran, describing the escalating tensions as “threatening” – not only for those directly targeted by the United States and Israel, but “for all of us.” He characterized actions taken by former President Trump as a “massive escalation with an open outcome.” When asked if Germany should simply stand by and watch, he responded, “We are not doing that,” citing ongoing diplomatic efforts. He underscored that the root cause of the conflict lies in what he described as a decades-long “regime of terror” in Tehran, but expressed skepticism that current actions would truly enhance Israeli security.

Merz revealed that he spoke with Trump on Sunday and conveyed his concerns, telling him, “If you want us to help, please ask us beforehand.” He characterized this as a level of engagement that Germany “simply cannot accept.”

A Phone Call with Trump “Not Without Contradictions”

Regarding the conversation with Trump, Merz described it as “not without contradictions.” He stated that Trump repeatedly expressed his belief that he did not need NATO. However, Merz believes Trump understood that the conflict in Iran was not a NATO war and accepted that Germany would not participate directly. Trump reportedly offered to organize a military security presence in the Strait of Hormuz with other nations if a ceasefire were reached, but this was not an option whereas the war continued.

Turning to the war in Ukraine, Merz described it as a “brutal war of attrition” that would not be resolved militarily, but rather when “Russia is economically exhausted to the point where they can no longer continue it.” He asserted that Russia is in a “deplorable condition” and emphasized the need to “stand firm,” defending the freedom of Europe.

The broader shifts impacting Germany were also a focus of the congress, with Volkswagen CEO Oliver Blume earlier discussing the challenges facing the German automotive industry with FAZ Editor Gerald Braunberger. Blume noted that the industry had been caught off guard by the rapid pace of change.

Merz also addressed domestic reforms, stating, “I am not the moderator of the federal government, and I am not the moderator of the Federal Republic of Germany.” He emphasized his responsibility to drive the government forward and address its weaknesses, pointing to the recent passage of a significant private pension reform bill. His focus, he said, is on restoring the competitiveness of the German economy by lowering energy costs, social costs, taxes, and bureaucratic burdens, with a larger package of reforms planned for the summer.

On the topic of nuclear energy, Merz maintained that a return to nuclear power is technically irreversible, but acknowledged ongoing efforts in fusion technology. He suggested that small modular reactors could be a viable option in the longer term. In the short term, he emphasized the need to secure a reliable baseload power supply, noting that approval has been granted for gas-fired power plants in Brussels and that construction needs to initiate quickly. He also indicated that, if the energy crisis persists, the government may need to extend the operation of existing coal-fired power plants.

Abolishing Marriage Split? The Chancellor is Not Convinced

When asked about tax policy, Merz addressed a proposal from SPD leader Lars Klingbeil to abolish marriage split for future marriages. Merz expressed skepticism, arguing that the marriage split does not prevent women from entering the workforce. “Marriage is a community of income and support,” he stated, adding that income should be treated jointly for tax purposes. He emphasized the need to reduce the overall tax burden and social security contributions.

At last year’s FAZ Congress, Merz had expressed hope for the success of Lars Klingbeil as SPD party leader, believing it would contribute to the stability of German democracy. He reiterated the importance of a strong political center, stating that the key is to implement necessary changes with this coalition government, which he described as a “coalition of the political center.” Merz defended his willingness to compromise, stating, “A democracy lives from compromises.”

The FAZ Congress, which was sold out weeks in advance, provided a platform for these critical discussions as Germany navigates a complex and evolving geopolitical landscape. The conversations underscored the challenges and opportunities facing the nation as it seeks to redefine its role in a rapidly changing world.

Looking ahead, the German parliament will continue to debate and refine these policies. The next key checkpoint will be the summer release of the comprehensive economic reform package outlined by Chancellor Merz.

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