The German chancellor has warned that the rise of “great powers” is shaking the foundations of the old world order, unravelling it at “breathtaking pace”.
Addressing the World Economic Forum in Davos on Thursday, Friedrich Merz said a time of “great power politics” had begun, citing Russia’s war with Ukraine, China’s move into the “ranks of the great powers” and the radical reshaping of US foreign and security policy under Donald Trump.
“This new world of great powers is being built on power, on strength and when it comes to it, on force. It is not a cosy place,” Merz said, urging leaders at Davos not to accept this new reality and to “shape the future” instead.
Merz’s speech chimed with the views of Mark Carney, Canada’s prime minister, who told the forum on Tuesday that a system of intensifying rivalry between great powers was rupturing the world order.
“Two days ago, Mark Carney said in this hall: ‘We must no longer rely only on the power of our values. We must also recognise the value of our power,’” Merz said. “I share that view. And when I look into this hall, I want to say: we share it. That is a good starting point.
“Our greatest strength remains the ability to build partnerships and alliances among equals based on mutual trust and respect.”
Merz said a world in which only power counted was a dangerous place – first for small states, then for the middle powers and ultimately for the great ones.
“I do not say this lightly. In the 20th century, my country, Germany, went down this road to its bitter end. It pulled the world into a black abyss,” he said.
The reshaping of the world order has been a top issue at the forum’s annual meeting this week, as the Nato alliance has been tested by Trump’s determination to acquire Greenland.
Merz said Europe must boost its unity and competitiveness to help it fight back against the new era of “great power politics”. That meant massive investment in defence, measures to improve economic competitiveness, and unity among Europeans and “like-minded partners”.
Germany’s leader also welcomed Trump’s announcement on Wednesday night that he had agreed the “framework of a deal” with Nato over Greenland. He warned that any threat to acquire European territory by force would be “unacceptable”.
Referring to Trump’s now-abandoned threat of tariffs on Europe over the Greenland row, he said: “New tariffs would undermine the foundations of transatlantic relations. Europe’s answer would be united, calm, measured and firm.”
Trump, who left Davos on Thursday afternoon, told Fox Business Network he would hit European countries with a “big retaliation” if they sold their holdings of US Treasury bonds.
This week the Treasury secretary, Scott Bessent, insisted he was not worried that European countries would dump their US debt holdings, as one Deutsche Bank analyst suggested could happen.
“Denmark’s investment in US Treasury bonds, like Denmark itself, is irrelevant,” Bessent declared.
