Davos: Germany's Merz says old world order 'unraveling'

German Chancellor Friedrich Merz addressed the World Economic Forum in Davos, Switzerland on Thursday, where he alerted attendees that the "old world order is unraveling at a breathtaking pace."

Merz said the "pole position" of the United States is being challenged by Russia and China. 

New world of 'great powers' is 'not a cozy place' 

"We have entered an era of great power politics," Merz said. "The new world of the great powers is founded upon power, strength and when necessary, force. It is not a cozy place."    

The German chancellor said Russia's assault on Ukraine signifies the beginning of a "new era, but change runs much deeper."

"China, with strategic foresight, has worked its way into the ranks of the great powers," Merz said. He said Washington is reacting to these challenges from these other "great powers" by "radically reshaping its foreign and security policy."  

Amid a new geopolitical order, Merz said Europe must remain united.

"Europe [and its] like-minded partners must stand closer together," the German chancellor said. He said European countries must do more to make their economies competitive and to "invest massively in our ability to defend ourselves."

Merz said a "world where only power counts is a dangerous place." He recalled the Nazi regime in Germany from 1933 to 1945, which "pulled the world into a black abyss." 

At the same time, he urged Europe not to give up on the NATO alliance and its relationship with the US.

Merz welcomes Trump's deescalation on Greenland

Since returning to office a year ago, US President Donald Trump's second administration has imposed tariffs on the EU and also angered European allies, such as Denmark, over its insistence that the US must acquire Greenland.  

The Trump administration has said the US acquisition of Greenland is necessary due to security threats from Russia and China. Greenland is a territory of Denmark, which is both an EU and NATO member state. 

"We welcome that the United States is taking the threat posed by Russia in the Arctic seriously," Merz said. 

At the same time, the German chancellor expressed solidarity with Greenland and Denmark. "Any threat to acquire European territory by force would be unacceptable," he said.

Merz welcomed Trump's remarks Wednesday night that the US would not take over Greenland by force. The German chancellor also reacted to Trump's earlier threats of new tariffs on the EU over Greenland, saying the duties would "undermine the foundations of transatlantic relations."   

How are Germany and the EU acting in a shifting world? 

As Germany's chancellor, Merz pinpointed several areas where his country is taking action in a changing world.

"We must continue supporting Ukraine in its fight for a just peace," Merz said, as Russia's invasion will soon hit its four-year anniversary. Merz has consistently backed Ukraine since becoming chancellor last year. 

"We must become capable of defending ourselves on our own in Europe," he added, while also noting that he wants Germany to boost defense spending to 5% of GDP.

He also mentioned corporate tax reform, investments in infrastructure and digital AI transformation as other policies his government is pursuing. 

On the European level, Merz touted the EU's trade deals with the Latin American Mercosur trade bloc and a potential new pact with India, while also calling for bureaucracy to be substantially reduced in Europe.

Merz said there will be a special summit on February 12 with Italian Prime Minister Giorgia Meloni, where EU leaders will convene to in the goal of having a "fast, dynamic Europe and a service-oriented administration."

Edited by: Sean Sinico