As Germany braces for its next federal elections, Friedrich Merz, the leader of the Christian Democratic Union (CDU) and a leading candidate to succeed Olaf Scholz as chancellor, has expressed support for reviving free trade discussions between the European Union (EU) and the United States.
In a recent interview with the German press agency dpa, Merz underscored the need for a proactive and cooperative approach to counter tougher trade conditions under the incoming U.S. administration.
Merz’s remarks come as President-elect Donald Trump, who has been critical of EU trade policies in the past, prepares to take office ahead of Germany’s elections.
Trump famously terminated negotiations on the Transatlantic Trade and Investment Partnership (TTIP) during his first term, opting instead to engage in a series of trade disputes with the EU. Ahead of the 2024 U.S. election, Trump also announced his intention to impose steep tariffs on European goods, a move that would disproportionately impact Germany.
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The U.S. is Germany’s largest export market, and new tariffs could exacerbate the economic challenges facing the country, which has already been grappling with sluggish growth. Recognizing this risk, Merz called for a constructive response to avoid escalating trade tensions.
Merz proposed a renewed “positive agenda” with the U.S., focusing on mutual benefits for American and European consumers. He emphasized that free trade could be a powerful tool to prevent a “dangerous spiral of tariffs” and foster a more balanced and competitive economic relationship between the two regions.
“We need a positive agenda with the U.S. that benefits American and European consumers alike,” Merz stated. “A new European-American initiative for joint free trade could prevent a dangerous spiral of tariffs.”
His vision aims to restore momentum to transatlantic trade relations and create a framework that would benefit both economies amidst global uncertainties.
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Beyond advocating for international trade cooperation, Merz also stressed the importance of domestic economic reforms to make Germany more competitive on the global stage. He proposed lowering corporate taxes to 25% and addressing non-wage labor costs to create a more business-friendly environment.
“Germany needs to become an attractive place to do business again,” Merz asserted. “Then we can tell the United States: ‘Yes, we are ready to face this competition with you as well.’”
Merz’s remarks highlight a broader economic strategy aimed at revitalizing Germany’s industrial base, ensuring its resilience in the face of external pressures, and maintaining its position as Europe’s economic powerhouse.
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