SINGAPORE, October 27, 2026 — German Chancellor Friedrich Merz warned that the collapse of the old global order threatens the interests of middle powers in Europe and Asia, calling for new forms of cooperation and combined trade deals during a lecture in Singapore on Tuesday.
< h2> Merz Calls for Europe-Asia Trade Integration
Merz delivered the warning in a lecture in Singapore on Tuesday, October 27, 2026. He stated that the erosion of the existing global structure necessitates that middle powers in both regions become more assertive. The Chancellor advocated for combining European and Asian trade agreements as a means to strengthen economic resilience. He is currently on a multi-day tour of Asia aimed at promoting new forms of cooperation and trade.
< h2> Steinmeier’s China Visit Highlights Economic Tensions
Parallel to Merz’s trip, German President Frank-Walter Steinmeier began a farewell tour in China on the same day. In Hefei, Steinmeier urged German companies to “act with confidence” in the Chinese market, noting the high value placed on German technology. His visit focused on culture and science, including a stop at the Volkswagen China Technology Company research center, which employs 3,000 people. However, Steinmeier also addressed the growing trade imbalance, stating that China’s accumulating trade surplus causes concern and that economic cooperation must continue to the mutual benefit of both sides. Germany’s trade deficit with China reached just under €90 billion ($100 billion) in 2025, according to the Federal Statistical Office.
< h2> Domestic Developments: Nord Stream Trial and Defense Posture
Domestically, a German court denied a defense request to end the trial of a Ukrainian suspect in the Nord Stream pipeline sabotage case. Serhii Kuznietsov, 50, faces charges of causing an explosion, damaging property, disrupting public services, and being an accomplice to war crimes. The trial began this month at the Hamburg state court. Meanwhile, Germany’s defense minister called for “a stronger Europe within a stronger NATO” amid the broader security context facing the continent.
Concerns Over Innovation and Economic Dependency
While President Steinmeier emphasized the high value of German technology during his visit to the Volkswagen China Technology Company in Hefei, members of his delegation expressed significant caution regarding the future of the German economy. Johannes Volkmann, a lawmaker accompanying the President, warned that Germany must not “lose its leadership in innovation.” He stressed that the nation needs to improve competitive conditions domestically to prevent the creation of new dependencies that could arise if value creation and innovation are permitted to occur exclusively outside of Europe.
The urgency of these concerns is underscored by the broader trade imbalance currently facing the European Union. According to EU Trade Commissioner Maros Sefcovic, the trade deficit across the 27-member bloc reached nearly €197 billion during the first half of 2026. This trend has prompted calls for Europe to reorganize its economic instruments and reposition itself to ensure that international cooperation remains mutually beneficial. Steinmeier noted that the current accumulation of trade surpluses by China has caused the established model of economic cooperation to become unbalanced, necessitating a strategic shift to protect European economic interests.
Merz Urges Assertive Middle Powers in Europe and Asia
German Chancellor Friedrich Merz has explicitly called for middle powers in Europe and Asia to assume greater assertiveness in the face of a collapsing global order. Speaking during a lecture in Singapore on Tuesday, October 27, 2026, Merz argued that the erosion of existing structures demands a proactive response from nations that have traditionally occupied a middle ground between major powers. He is currently on a multi-day tour of Asia specifically intended to promote new forms of cooperation and trade, reinforcing the notion that these smaller states must adapt quickly to maintain their influence.
This appeal for assertiveness aligns with broader concerns regarding economic security and dependency. During his concurrent visit to China, President Frank-Walter Steinmeier echoed the need for Europe to strengthen its position, urging German companies to “act with confidence” in the Chinese market. However, accompanying lawmaker Johannes Volkmann warned that Germany must not “lose its leadership in innovation” and must improve domestic competitive conditions to avoid creating new dependencies outside of Europe. With Germany’s trade deficit with China reaching just under €90 billion ($100 billion) in 2025, and the broader EU deficit hitting nearly €197 billion in the first half of 2026 according to EU Trade Commissioner Maros Sefcovic, the call for assertive middle powers is increasingly tied to the necessity of reorganizing economic instruments to protect mutual interests.
Sources
- Germany's Merz says erosion of global order means middle powers in Europe and Asia must be more assertive
- Germany's Merz says erosion of global order means middle powers in Europe and Asia must be more assertive
- Merz says collapse of global order threatens Europe, Asia interests
Photo: Steffen Prößdorf (CC BY-SA 4.0)
