Germany’s Merz says EU must be transformed into European defense union

Speaking at the Suddeutsche Zeitung Business Summit, Merz said Europeans must take new steps in response to the war in Ukraine, shifts in Euro-Atlantic relations, and China's increasingly aggressive posture.

“It’s a necessity to transform this European Union into a European defense union. We face international challenges that we as Europeans must address together – with the ability to defend ourselves,” he said, adding that Germany must assume more responsibility for Europe.

“As the strongest economy and most populous country in this European Union, we bear a far greater responsibility than anyone else to assume a degree of leadership within this European Union. But that remains an empty phrase if it is not filled with substance,” Merz said.

The conservative leader described Russia as the greatest threat to Europe, arguing that Moscow's actions extend far beyond Ukraine's borders through daily hybrid attacks targeting European liberal democracies.

“This threat to Ukraine isn't just a territorial threat to a European country. It's a constant threat to our democracies, our freedoms, our way of life and work,” he said, accusing Russia of drone incursions into European airspace and cyberattacks on European and German businesses.

Russia has consistently denied claims it is behind the incursions and other incidents, which have grown more frequent in recent months.

Turning to transatlantic relations, Merz emphasized deteriorating ties under US President Donald Trump, citing his administration's unilateral foreign policy decisions and tariffs targeting European economies.

"The tariff dispute with the US is far more than a trade disagreement. It has opened a deep rift across the Atlantic, calling into question much – indeed almost everything—that we have considered right and necessary in transatlantic relations over the past decades," he said.

Merz also raised concerns about geopolitical developments in Southeast Asia, arguing that "China is becoming inwardly more repressive, outwardly more aggressive,” putting Europe's relations with Beijing on an increasingly difficult path.