German chancellor Friedrich Merz has warned that Europe’s freedom is dependent on its ability to defend itself. A year after winning power, the German leader told delegates of his centre-right Christian Democratic Union (CDU) the world had entered a new era where “what counts is strength – military as well as economic”.
“In this fragile world, security is the pre-condition for freedom [and] whoever neglects their security can be politically blackmailed,” said Merz (70) in his 75-minute address in Stuttgart.
The CDU leader told delegates he would “not disappoint our voters”. It was a nod to unrest over how he won the 2025 election on a reform and austerity platform, then changed tack immediately to loosen budget rules for greater debt-financed investment in infrastructure and defence.
That “difficult decision” to take on record debt remained correct, Merz said, because it pre-empted a looming blockade in the new parliament from extremist parties and secured spending that “serves our freedom and that of Europe”.
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He also tackled another inner-party debate over whether the CDU should retain its ban on political co-operation with the far-right Alternative for Germany (AfD).
Though more right-wing than previous CDU leaders, Merz received applause from delegates with a promise to “seek support for our policies exclusively in our country’s political centre”.
“We will not allow these people from the so-called Alternative for Germany to ruin our country,” he said.
Polls suggest the AfD will take 18-20 per cent support in two state elections next month. They take place in the south-western states of Baden-Württemberg and Rhineland-Palatinate.
In September’s election in the eastern state of Saxony-Anhalt, polls indicate the AfD will win with about 40 per cent support.
In a speech that touched on reform more as a concept than in detail, Merz promised a “paradigm shift” on pension policy, but offered little comfort to mutinous younger CDU members.
The chancellor’s claim that Germany was already in economic recovery mode – with modest growth forecast this year and a doubling of foreign direct investment last year – was undercut by data showing German exports last year to the US fell by 18 per cent.
Looking outward, he said Germany and Europe needed a “grand new strategy” in a “tougher world” given the “unpredictability” of transatlantic relations.
“Increasingly, the US is losing interest in its role as a guarantor for the international order and their role as a dependable pacemaker,” said Merz. “We are well-advised to be clear of this and without illusions or nostalgia, set to work based on the rules of power politics.”
Merz said he had “no illusions” in relation to China, ahead of a visit there next week. He said Beijing was pushing a new multilateral order on its terms, where “freedom of speech, religion and press do not feature and where standing up for universal human rights is viewed as an intervention in internal affairs”.
A spokesman for the German leader said one objective of the visit – which includes a large trade delegation – is to determine the “right balance of co-operation” with the rising Asian power.
“We want co-operation where it is necessary and in our mutual interest,” the spokesman added.
Friday trade figures show China has displaced the US as Germany’s largest trading partner, with total exports and imports worth €251.8 billion last year.
In Stuttgart, Merz had to share the spotlight with Angela Merkel, appearing at her first CDU party conference since standing down in 2021.
The former chancellor (71) sat in the front row, didn’t address delegates and posed for selfies.
