Friedrich Merz makes big promises from Ukraine to economy in first government statement to Bundestag

The new German chancellor has pledged to recover Berlin from years of economic stagnation, deliver on “much needed” military development and fulfil NATO defence spending targets.

Newly appointed German Chancellor Friedrich Merz announced on Wednesday his commitment to unify Europe and the United States in their strategy regarding Ukraine, strengthen Germany's military to establish the most formidable conventional army in Europe, and reinvigorate the continent's largest economy as a driving force for growth.Merz, the leader of the Christian Democratic Union (CDU), assumed office a week ago following his victory in Germany's federal elections in February, which concluded a six-month period during which the European Union's most populous nation was without a government holding a parliamentary majority.He has already embarked on numerous visits to Berlin's EU partners and has travelled to Kyiv alongside his French, Polish, and British counterparts.“Europe expects something from us,” said Merz in his first policy speech to parliament. “The new German government accepts this responsibility,” he added, promising that “we will offer our partners and friends reliability and predictability.”He stated that "the times in which Germany simply abstained on significant questions of European policy should be over," seemingly alluding to the internal conflicts that plagued his predecessor Olaf Scholz's three-party coalition prior to its dissolution in November.The new administration unites Merz's centre-right Union bloc with Scholz's centre-left Social Democrats (SPD).Merz highlighted his intention to maintain the support of the US Trump administration for Ukraine, asserting that he would operate under the principle that Germany's assistance for Ukraine is a collective endeavour involving Europeans, Americans, and other allies, serving their mutual interests.He pointed to Russian destabilisation efforts of various kinds and rejected the idea of a “dictated peace” or the “subjugation” of Ukraine.“We hope and we all are working hard on this clear position not just being held everywhere in Europe but also by our American partners,” Merz said, adding that he thanked President Donald Trump for supporting an unconditional 30-day ceasefire in two recent phone calls.“It is of paramount importance that the political West not let itself be divided, so I will continue to make every effort to produce the greatest possible unity between the European and American partners.”Prior to assuming office, the newly formed governing coalition expedited legislative measures to facilitate increased defence expenditure by relaxing stringent debt regulations, and to establish a substantial infrastructure fund aimed at revitalizing the sluggish economy.The German military had experienced years of underfunding until Chancellor Scholz, in response to Russia's full-scale invasion of Ukraine in 2022, committed to raising Germany's defence spending to the NATO benchmark of 2% of gross domestic product and announced the establishment of a €100 billion special fund for military modernisation.Germany achieved this target through the fund, which is projected to be depleted by 2027.Merz said that “we will fulfil our commitments” in Germany's interest and that of NATO, but didn't address US demands for allies to raise their defence investments to 5% of GDP.The German leader acknowledged that Berlin’s security and influence in the world “stand and fall” with economic strength.He committed to reducing bureaucratic processes, enhancing digital transformation, offering tax incentives for businesses, and fostering additional trade agreements within the EU.“We will do everything to get Germany's economy back on the course of growth,” he said. “We want to invest and reform ... through our own efforts, we can once again become a locomotive of growth that the world looks at with admiration.”