Europe can be a power

"In these weeks and months, we are all witnessing a rapid political change in our reality", said Federal Chancellor Friedrich Merz in his policy statement on the informal meeting of the European Council on 22 January. At the same time, there are also new opportunities for Europe as a reliable partner, he said, adding that Europe in particular knows how far you can get with cooperation.

"In the past week, we have shown that we in the European Union can also act very quickly in times of doubt", he emphasised. He said that there had been a united and decisive response to the tariff threat, and that this had been successful. With this determination, he said, "our tasks in Europe" must now also be dealt with. In this context, he also spoke about improving European competitiveness and defence capabilities.

Watch the policy statement in full here (in German only):

Video Regierungserklärung des Kanzlers im Deutschen Bundestag

Read the policy statement in full here (in German only).

The Federal Chancellor spoke about issues including …

... the transatlantic alliance and NATO

Federal Chancellor Merz emphasised the special value of the long-standing, trusting alliance with the USA. This should not be jeopardised lightly, he noted, adding that the United States would "always be offered the hand of cooperation". In Afghanistan, he said, German soldiers had stood alongside the USA for over 20 years as part of the NATO mission: "We won't allow this mission to be belittled today", said the Chancellor.

He emphasised the increased trust in the alliance, saying that NATO is still "the best guarantee of freedom, peace and security". It is therefore, Merz said, the aim of Europeans to preserve and strengthen it from and within Europe.

... the rules-based world order and new partnerships in trade

Germany is in favour of new partnerships, Merz said, outlining the guiding principle: "As democracies, we are partners and allies, not subordinates." Free trade, no tariffs or low tariffs are the basis for prosperity and security, said the Federal Chancellor, and therefore called for the MERCOSUR agreement to finally be concluded. He also said that he supports the EU-India agreement.

Rules-based trading and commerce are not dead, he said. He emphasised that more and more countries around the world also see an opportunity in the current new world order, and they prefer free and fair trade to arbitrariness. He also confirmed the Federal Government's express support for the World Trade Organisation in its work to "enable open and fair trade in the world".

… the strengthening of EU competitiveness

According to Merz, the European Union must make its economy competitive again and narrow the growth gap with the USA and China. After all, competitiveness is an essential aspect of German and European sovereignty, he said. On his initiative, a meeting of European heads of state and government would be held in Belgium on 12 February to discuss this important topic, he reported. He explained that he had agreed on proposals with Italian Prime Minister Meloni to reduce bureaucracy and further integrate the single market.

There would also be discussions in Belgium about which EU regulations might be simplified. Although some reforms were still required for this, said the Chancellor, the necessary will to implement them was "finally there".

... reforms in Germany

The Federal Chancellor emphasised the need for reforms in Germany. The Federal Government wants to "renew the substance of our country", he said, so that it will hold up "for many years and decades to come". Merz noted that the course set last year was beginning to show results and there were signs of increasing innovation, but also a need for reforms in social security systems. Chancellor Merz mentioned a fundamental reform of the pension insurance system, which should be passed this year. "And I am confident that we will be able to do the same for health and care."

... the possibility of shaping policy

Germany and Europe are far from having reached the end of their opportunities, said Merz. There is, he said, so much potential in the European Union and in Germany for something good to be made of the difficult global situation: "Europe has always grown when it was under pressure, when there were crises." We are under pressure, he said, but pressure can also lead to a lot of good.

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