by Stefan J. Bos, Worthy News Europe Bureau Chief
DAVOS, SWITZERLAND (Worthy News) – German Chancellor Friedrich Merz has effectively called the European Union a failure and said radical reforms are needed to save the 27-nation bloc amid significant global challenges.
Merz, leading Europe’s largest economy, told the World Economic Forum (WEF) in Davos, Switzerland, that Germany and the EU have “wasted incredible potential” while the United States is increasingly setting the tone for a new world order.
The chancellor, a member of the center-right Christian Democratic Union (CDU), said Europe has stifled growth by curtailing freedom and personal responsibility through excessive regulation.
“Both Germany and Europe have wasted incredible potential for growth in recent years by dragging their feet on reforms and unnecessarily and excessively curtailing entrepreneurial freedoms and personal responsibility,” Merz stressed in his address.
However, he pledged change, telling business and political leaders that Europe must move quickly to restore competitiveness.
REDUCING BUREAUCRACY
“We must reduce bureaucracy substantially in Europe,” Merz said. “The single market was once created to form the most competitive economic area in the world. Instead, we have become the world champion of over-regulation. That has to end.”
He added that “security and predictability take precedence over excessive regulation and misplaced perfection,” signaling a shift toward a more business-friendly agenda.
Merz also insisted that Europe “is not at the mercy” of what he called a “new world order,” warning that global politics is entering an era dominated by raw power.
“The old world order is unraveling at a breathtaking pace. We have entered an era where only power counts, a dangerous place,” he said, indirectly referring to growing disputes with U.S. President Donald J. Trump.
Those disputes include tensions over Greenland’s strategic future, looming tariffs, the war in Ukraine, and sharply differing views on freedom and market mechanisms, according to Merz and other diplomats monitoring the transatlantic relationship.
NEW REALITY?
“We [Europe] do not have to accept this new reality as fate,” Merz told the Davos gathering.
The German leader already acknowledged past “policy mistakes,” including Germany’s decision to shut down nuclear power plants, which he called a “serious strategic mistake” in remarks to the German Chamber of Industry.
His remarks come as Europe struggles with energy security, economic stagnation, and geopolitical instability linked to Russia’s ongoing war in Ukraine.
Merz has also signaled a tougher domestic course on migration, saying in November 2025 that he would “begin discussing repatriation of Syrians in Germany,” after earlier refusing cooperation with a right-wing party advocating similar measures.
Merz’s blunt criticism comes as European leaders increasingly acknowledge the EU faces the risk of falling behind global rivals. Germany and Italy have recently warned that without concrete reforms, Europe’s competitiveness could erode further compared to the United States and China.
EU’s EXECUTIVE
The President of the European Commission, the EU’s executive, echoes those sentiments. Ursula von der Leyen urged member states to boost innovation, “reduce regulatory burdens,” and strengthen Europe’s industrial base, saying the bloc must remain “economically strong to defend its values and security interests.”
Merz’s Davos speech reflects mounting concern among policymakers that Europe must adapt quickly or risk being sidelined in an era of intensifying great-power rivalry, according to a Worthy News analysis.
European officials have increasingly debated how to restore competitiveness while maintaining unity amidrising security threats, economic challenges, and political divisions within member states.
Merz’s speech underscored Germany’s intention to press for sweeping change, warning that Europe must act decisively or face further decline on the world stage.
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
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