Friedrich Merz of the CDU stated during a government address to the European Council next week that Europe must secure a “strong position” within a burgeoning new world order. Addressing the Bundestag on Thursday, he emphasized that cooperation must be directed both with and for this new global arrangement, enabling Europe to remain a global force for democracy, prosperity, freedom, and peace.
To achieve this, Merz outlined several necessary policy shifts. He argued that the EU’s trade policy needed to be significantly enhanced, requiring an expansion of its “toolkit” to facilitate the signing of further free trade agreements, such as one with Malaysia. Furthermore, to improve Europe’s overall competitiveness, he stressed the need for extensive bureaucratic streamlining.
Turning to technology, Merz saw the sweeping changes brought by AI applications as a major opportunity for Germany. He predicted that local industries and the engineering sector could become “winners of this AI revolution across the globe.”
Economically, Merz asserted that the EU budget should prioritize investments in defense and competitiveness, stating that this shift would necessitate comparable budget cuts elsewhere. He strongly dismissed ongoing debt as a viable solution.
On geopolitical matters, the Chancellor reiterated his demand that European nations be actively involved in any future peace negotiations concerning the Ukraine war. Additionally, Merz pledged Germany’s readiness to participate in securing the Strait of Hormuz should a peace agreement be reached in Iran.
