Finance
Germany's Merz says rules-based world not dead despite 'rough winds'
Published by Global Banking and Finance Review
Posted on January 29, 2026
2 min readLast updated: January 29, 2026
Quick Summary
Chancellor Merz urges a stronger NATO in Europe, stressing US cooperation and addressing tariff threats in parliament.
Friedrich Merz Affirms the Resilience of a Rules-Based Global Order
The Importance of a Rules-Based Global Order
BERLIN, Jan 29 (Reuters) - German Chancellor Friedrich Merz on Thursday said the goal of a rules-based global order was not dead, calling for a stronger NATO within Europe while still extending the hand of cooperation to the United States.
European Response to Tariff Threats
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 weapon to seize Greenland.
Emergence of Great Powers
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 and nearly four years of war between Russia and Ukraine.
Opportunities in Global Reorganization
"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.
He added that in recent weeks, "we have been able to experience something of the joy of self-respect", adding that rules-based action and rules-based trade are 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," he added.
(Reporting by Sarah Marsh and Matthias Williams; Editing by Madeline Chambers)
Key Takeaways
- •Germany's Chancellor Merz calls for a stronger NATO in Europe.
- •Merz emphasizes maintaining cooperation with the US.
- •Europe aims to resist tariff threats.
- •Merz addressed the German parliament on these issues.
- •The focus is on European defense and transatlantic ties.
Frequently Asked Questions about Germany's Merz says rules-based world not dead despite 'rough winds'
1What is NATO?
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.
2What is economic growth?
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).
3What is debt sustainability?
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.
