"Europe must protect peace and prosperity" - Chancellor Merz: Challenge, protectionism in the global economy
Europe must defend its interests more strongly to ensure peace and prosperity in 2026, amid challenges from Russian aggression, global protectionism and changing relations with the US, German Chancellor Friedrich Merz said in his annual address.
Since taking office in May, Merz has helped lead European efforts to support Ukraine against Russian invasion. Berlin has also increased defense spending from 2023 in an effort to show it is ready to take on more responsibility.
In his New Year's speech, Merz did not shy away from criticism, saying that the "terrible" war taking place on Europe's doorstep poses a direct threat to continental freedom and security.
"We are seeing more and more clearly that Russia's aggression was and is part of a targeted plan against all of Europe," Merz said, adding that Germany faces sabotage, espionage and cyberattacks every day.
He said a further challenge came from protectionism in the global economy and that Europe's dependence on imported raw materials was increasingly being used as political leverage against it.
Struggling to revive its export-oriented economy, Germany is trying to reduce dependence on China while also grappling with global trade tensions and the effects of U.S. President Donald Trump's trade tariff policies.
Europe's largest economy has also been hit by what many economists call a lack of reforms and domestic investment in recent years, and is expected to grow only modestly this year after two years of contraction.
Merz also addressed a more difficult partnership with the United States, which has long been a reliable guarantor of German and European security, since Trump returned to the White House in January 2025.
"For us Europeans, this means that we have to defend and express our interests much more forcefully ourselves," Merz said. However, he said that Europe must be guided by faith, not fear, and must take matters into its own hands.
"This could be a decisive year for our country and for Europe. It could be a year in which Germany and Europe, with new strength, will reconnect with decades of peace, freedom and prosperity," Merz said.
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