The upcoming administration is expected to enjoy significant financial flexibility due to credit-funded special allocations. Nonetheless, it will encounter considerable international hurdles — nearly all of which can be attributed to policies under the Trump presidency.
These days, the entire globe is focused on Germany. Our mission extends beyond our nation’s boundaries and the prosperity of our citizens, both within the European Union and across the world.
These were the remarks made by Christian Democratic Union (CDU) conservative chief Friedrich Merz in the German Bundestag when attempting to rationalize accruing significant additional debt. a proposal that was subsequently ratified .
Merz thinks that extra funding will be crucial for addressing the security and foreign policy issues the administration will encounter.
Below is a summary of the key challenges faced:
Transatlantic relations
For a decade, Friedrich Merz served as the Chair of Atlantik-Brücken — a nonpartisan group dedicated to fostering American-German ties.
Nevertheless, his confidence in a strong German-American alliance has significantly wavered following Donald Trump’s commencement of his second term. “I am stunned by Donald Trump,” stated Merz subsequent to Trump accusing Ukraine of instigating the conflict. He expressed his dismay at both Trump’s and Vice President JD Vance’s actions or statements. public disgrace of the Ukrainian President , Volodymyr Zelenskyy, at the White House.
Germany had poor relations with Trump during Angela Merkel’s chancellorship—primarily due to her welcoming stance on refugees, something he strongly opposes. Despite Merz frequently distancing himself politically from Merkel, a one-on-one meeting between him and Trump might still prove challenging.
Ukraine
The probable next German Chancellor is already advocating for another financial aid package for Ukraine, which would be valued at a minimum of €3 billion euros ($3.26bn). Since Germany’s parliament has already approved relaxing the nation's " debt brake That shouldn’t pose an issue for allocation. Nevertheless, if American assistance were insufficient and Europe had to compensate for the shortfall, Germany could encounter significantly higher amounts.
Another issue: launching extended-range Taurus cruise missiles Support for this idea comes from Merz, whereas the center-left Social Democratic Party (SPD), led by current German Chancellor Olaf Scholz, has consistently opposed it. It will be intriguing to observe how the SPD might address this contentious matter in their probable upcoming position as the smaller party within the coalition government.
Defense cooperation
Merz is uncertain about how Trump’s America would honor NATO's commitment to mutual defense. Therefore, during the lead-up to Germany's federal election, Merz stated that ensuring European autonomy from the United States should be his “top priority” — with all haste.
He aims to foster tight collaboration on defense strategies among European nations. His plan involves discussions with the nuclear-armed states of France and the United Kingdom regarding nuclear safeguards for both Germany and Europe as a whole.
European Union
Merz alleges that the present administration led by SPD leader Olaf Scholz has overlooked European collaboration. He particularly believes that Germany’s ties with its nearest allies—France and Poland—have weakened.
Merz aims to alter this situation, though it will not be simple. The French President, Emmanuel Macron, faces significant domestic challenges. Following several years of rule by the right-wing nationalist PiS party, Poland now boasts a pro-EU administration led by Donald Tusk, who previously served as the president of the European Council. Nonetheless, Germany presently lacks strong ties with both France and Poland.
Moreover, in other European Union nations, critics of the EU and right-wing populist movements are gaining strength.
Trade policy
Trump’s impending threats of import duties on products from Europe have raised concerns. The unpredictability leaves Europe uncertain about future developments. One thing remains clear: relations between continents regarding trade are growing increasingly complex. In particular, Germany, which relies heavily on exports, finds itself under significant pressure due to having faced economic downturns over the last twenty-four months.
The EU is responsible for transatlantic trade: Germany cannot act alone. However, it should press Brussels to ensure that the trade dispute does not escalate into a trade war — one in which everyone would lose.
China
As a way response to the trade conflict with the US, some politicians in Berlin and Brussels are pushing for strengthening business ties with China again. However, the days when German exporters were doing well in China seem to be a thing of the past. German cars, once export hits in China, are now gathering dust there.
China is manufacturing affordable electric vehicles and has been successful in selling them within the European Union. In reaction, the EU is attempting to safeguard its market from Chinese-made electric cars. Being a nation heavily reliant on exports, Germany is eager to ensure that trade limitations with China remain controlled.
In the past, Friedrich Merz has established himself as a critic of China, criticizing Chancellors Olaf Scholz and formerly Angela Merkel for their lack of firmness toward Beijing.
Middle East conflict
Regarding the conflict in the Middle East, the German government finds itself in a challenging situation: ensuring Israel’s safety remains a top priority for all German administrations. Nonetheless, German officials have often condemned Israel's actions against Hamas in the Gaza Strip as excessive.
The German administration finds itself in a difficult position because of the International Criminal Court’s arrest warrant for Israeli Prime Minister Benjamin Netanyahu, who is accused of suspected war crimes in the Gaza Strip. Supporting the ICC, Germany could face pressure to detain Netanyahu were he to travel to Germany.
Friedrich Merz has stated that this would not occur during his tenure as German Chancellor.
The original version of this article was penned in German.
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Author: Christoph Hasselbach
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