Finance
Germany's Merz: Europe found 'joy of self-respect' to defend rules-based world
Published by Global Banking & Finance Review®
Posted on January 29, 2026
3 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 29, 2026
3 min readLast updated: January 29, 2026
Chancellor Merz urges a stronger NATO in Europe, stressing US cooperation and addressing tariff threats in parliament.
By Sarah Marsh and Matthias Williams
BERLIN, Jan 29 (Reuters) - German Chancellor Friedrich Merz on Thursday said Europe had found "self-respect" in standing up for a rules-based global order, and called for a stronger NATO within Europe while still extending the hand of cooperation to the United States.
Speaking to the German parliament, Merz also said that Europe will no longer be cowed by tariff threats, after U.S. President Donald Trump backed away from using such tariffs as a tool to seize Greenland from fellow NATO member Denmark.
Merz's speech underscored how European leaders have been emboldened to try to project European strength and values, after the standoff with Trump over Greenland, global trade ructions and nearly four years of war between Russia and Ukraine.
"For some weeks now, we have been seeing with increasing clarity the emergence of a world of great powers. Rough winds are blowing in this world, and we will feel their effects for the foreseeable future," Merz told lawmakers.
In recent weeks, "we have been able to experience something of the joy of self-respect", he said, adding that rules-based action and rules-based trade were not dead.
"More and more countries around the world are recognizing that the current global reorganization also presents an opportunity for all actors who prefer rules to arbitrariness and who see more advantages in free and fair trade than in the one-sided pursuit of sole self-interest," Merz said.
EU UNITED AGAINST TARIFF INTIMIDATION, MERZ SAYS
Merz was speaking a week after tensions with Trump came to a head over Greenland, threatening to blow apart the NATO alliance that has underpinned Western security since the end of World War Two.
His words echoed those of French President Emmanuel Macron who, in a speech at the World Economic Forum in Davos, Switzerland, said Europe would not give in to bullies.
At the same event, European Commission President Ursula von der Leyen called for a new form of European independence, while Canadian Prime Minister Mark Carney said that in an age of great power rivalry democratic middle powers must build flexible coalitions together.
"Last week, we demonstrated that we in the EU can act swiftly when necessary. We were united in our determination not to be intimidated by tariff threats again," Merz said.
Merz touted European Union trade deals with South American trade bloc Mercosur and with India as examples of Europe pushing ahead, adding that Europe should accelerate reforms and dial back regulation.
In a separate row after the Greenland dispute, Trump provoked widespread anger across Europe when he said European troops had stayed off the front lines in Afghanistan.
"Fifty-nine German soldiers lost their lives during the almost 20-year deployment in Afghanistan, and well over 100 were injured, some seriously, in combat and attacks," Merz told parliament.
"We will not allow this deployment to be denigrated or belittled."
(Reporting by Sarah Marsh and Matthias Williams; Editing by Madeline Chambers, Aidan Lewis)
NATO, or the North Atlantic Treaty Organization, is a military alliance established in 1949 for mutual defense against aggression. It consists of member countries that agree to defend each other in case of an attack.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in GDP (Gross Domestic Product).
Debt sustainability refers to a country's ability to manage its debt without requiring debt relief or accumulating further debt, ensuring that it can meet its current and future financial obligations.
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