German Chancellor, Friedrich Merz has pointed out his country’s diplomatic challenges, saying that Germany faced “a deep rift in transatlantic relations that calls into question almost everything that we have considered right and necessary for decades.”
Merz described the challenges as “diverse” and “rare.” He noted, “Depending on how things develop, they may be unprecedented in German post-war history for a government.”
In a wide-ranging speech at the Süddeutsche Zeitung’s Economic Summit, Merz also warned about “a deep rift” in Europe’s relations with the US, the growing threat from China and the rapidly progressing systemic challenges to the world order that required a united European response.
He also pointedly warned about China, saying that the regime is “becoming outwardly more aggressive, inwardly more repressive.”

Merz also spoke about the need to digitise and modernise the German state, and removing EU’s “excessive” bureaucracy, which he said risked “jeopardising the overall success” of the EU’s single market.
He said that “a new fundamental world order” was only emerging, marking the end of the “reasonable certainty” of life in the past few decades.
“We are facing international challenges that we as Europeans must answer together, with the ability to defend ourselves.”
Friedrich Merz
He added that Europe faced “permanent” threats to its democracies, and freedoms.
Merz also spoke about the need for German and Europe to become more “sovereign” in emerging technologies, stressing the need to work closely with France, Poland, and even the UK, even after Brexit.
He also spoke at length about the challenges to global trade, saying that with the US under Donald Trump “we’re essentially witnessing an attempt to destroy the World Trade Organization.” “I want to counter that,” he said, mounting a defence of the international trade system.
Despite these significant international tensions, Merz expressed his commitment to domestic stability, saying that the coalition government “will prevail to meet challenges” and that he “will do everything to maintain coalition.”
On European matters, Merz indicated that he is “prepared to make significant concessions to complete the European capital market.”
Kibilius Points Out EU’s Defence Woes
Separately, EU Defence Commissioner Andrius Kibilius disclosed the bloc defence problems.
Kubilius said that Europe currently does not have the means to defend itself against potential Russian drone attacks and needs to integrate Ukraine’s know-how and capabilities to boost its defense.
“Why did it take us more than two years and the trigger of the Russian provocation with drones against Poland, and also against Baltic States and Romania, to understand that we are not ready to detect Russian drones and to destroy them with cost-effective means? The Russians are learning. Are we?”
Andrius Kibilius
This came as Kubilius gave a speech at the conference “Defending Baltics 2025: War Lessons from Ukraine” in the Lithuanian capital, Vilnius.
Kubilius said that European nations needed to include Ukraine and its “battled-tested” military of some 800,000 personnel to bolster their defenses.
“If we do not do that, we shall make a historical mistake, which shall leave us weaker. And which shall leave Ukraine weaker.”
Andrius Kibilius
His remarks come as European intelligence agencies warn that Russian President, Vladimir Putin could attack a NATO country in the coming years if the war in Ukraine ends.
Europe has experienced a spate of mysterious drone sightings in recent months that have also spurred countries to improve their defenses against this form of aerial attack, which has figured largely in the conflict in Ukraine.
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