In a world increasingly defined by geopolitical tensions, German Chancellor Friedrich Merz delivered a compelling address to the Bundestag on October 16, 2025, outlining a visionary path for Europe. As the European Council looms in Brussels, Merz’s speech shifts the narrative from reactive diplomacy to proactive strength, emphasizing that unity and resolve are key to navigating global challenges. But what does this mean for Europe’s future?
Lessons from Global Peace Efforts
Merz’s core message resonates in today’s volatile landscape: “Only strength preserves peace, and weakness causes peace to falter.” Drawing inspiration from recent developments in the Middle East, he highlighted his participation in the Sharm el-Sheikh ceremony where leaders from Qatar, Egypt, Turkey, and the United States solidified a ceasefire between Israel and Hamas. This event, influenced by US President Donald Trump’s Gaza peace plan, serves as a model for Europe to act more decisively on the world stage.
Imagine a Europe that doesn’t just react to crises but shapes them for the better. Merz urges the EU to harness its collective power to become a true advocate for global peace. By learning from these international collaborations, Europe could enhance its role in conflict resolution, potentially reducing dependencies on external powers and fostering long-term stability.
Revitalizing the Economy:
At the heart of Merz’s vision is an economic overhaul aimed at making the EU more competitive and resilient. He argues that peace thrives on economic strength, military capability, and political determination. To achieve this, Europe must end its “regulatory frenzy,” streamline procedures, open markets, and prioritize innovation.
Key proposals include:
- Unlocking the Single Market’s Potential: Better utilization of the European single market to drive growth and efficiency.
- Building a European Capital Market: Creating a “European Stock Exchange” to keep innovative companies like Germany’s BioNTech from seeking listings abroad, such as on the New York Stock Exchange.
- Climate Goals with a Competitive Edge: Achieving Germany’s 2045 climate neutrality target (and the EU’s 2050 goal) through technology and innovation, rather than bans and heavy regulations.
This shift could be a game-changer for businesses across the continent. By focusing on competitiveness, Europe might attract more investment, spur job creation, and position itself as a leader in green technologies. However, Merz notably sidestepped the contentious EU ban on new petrol and diesel cars by 2035, a policy his conservative allies oppose.
Germany’s Response to Russia
Turning to security, Merz announced a comprehensive action plan to counter Russian hybrid threats, set for discussion by Germany’s new National Security Council. Accusing Moscow of sabotage, espionage, cyberattacks, and disinformation—even pointing fingers at domestic far-right groups like the AfD—Merz painted a stark picture of Russia’s destabilization efforts.
This initiative underscores a proactive stance: Europe isn’t just defending itself but building resilience against asymmetric warfare. For citizens and policymakers alike, it signals a commitment to safeguarding democratic institutions in an era of information warfare.
Unwavering Support for Ukraine:
Merz reaffirmed Germany’s pledge to back Ukraine “for as long as necessary,” advocating for intensified pressure on Russia through a 19th sanctions package and creative use of frozen assets. His proposal? Allocate €140 billion in interest-free loans from Russian central bank funds, exclusively for military equipment, with repayment tied to Russian reparations.
Despite pushback from nations like Belgium, where these assets are held, Merz frames this as a strategy to hasten peace, not prolong conflict. This approach could redefine how alliances fund defensive efforts, potentially shortening the war and setting precedents for future international disputes.
Europe’s Global Role
Merz’s address isn’t just rhetoric—it’s a roadmap for a more assertive Europe in 2025 and beyond. By blending economic reforms with security enhancements, he envisions a bloc that’s economically vibrant, militarily prepared, and diplomatically influential. For businesses, this could mean new opportunities in innovation-driven markets. For global peace, it promises a Europe that leads rather than follows.
As the European Council approaches, all eyes will be on how these ideas translate into action. Will Merz’s vision unite the EU, or spark debates on the balance between strength and diplomacy? Only time will tell, but one thing is clear: in a “rougher” world, Europe’s strength could indeed preserve peace.
