'We are not a pawn in the hands of major powers,' Chancellor Merz

In his first New Year's speech since being elected as Germany's chancellor in February's snap elections, Friedrich Merz describes a world that is uncertain, conflict-ridden and increasingly fragmented.

But he also attempted to reposition Germany in this shifting scenario, painting a picture not of appeasement, but self-assurance.

"We are not a pawn of major powers," Merz said, openly contradicting the feeling of many who feel that Germany is losing influence and control in the face of global crises.

Instead, Merz emphasised Germany's own ability to act, pointing out that the country is neither a victim of external circumstances nor powerless in the face of international developments.

Merz also touched on Russia's full-scale invasionof Ukraine and reminded the audience that Ukrainians were once again starting the new year in extreme conditions, with little in the way of security, sometimes without electricity and often living under constant shelling.

At the same time, he made it clear that the war did not end at Germany's borders. Sabotage, espionage and cyber attacks, often linked to Russia, have long been part of everyday life in Germany and Merz said such destabilisation efforts are being directed at the whole of Europe.

However, Germany is a secure country, said Merz, adding that this security cannot be taken for granted and that Europe must strengthen its deterrent capability and defend its own interests more consistently.

Merz's New Year's address appeared to be deliberately generalised, but he nevertheless placed a clear emphasis on greater European independence in security matters.

In addition to foreign policy, Merz alsospoke about structural changes that will shape the country in the long term. He cited global protectionism, strategic dependencies on raw materials and the changing relationship with the USA as potential risks to prosperity and stability.

Here, too, he combined diagnosis and aspiration: Germany and Europe must learn to make themselves less vulnerable.

In terms of domestic policy, the Chancellor conceded that many people had hardly noticed any of the reforms that have taken place to date. At the same time, he announced further fundamental reforms, particularly to pensions and the welfare state. Merz cited demographic changes, rising costs and technological upheaval as reasons for the need to adapt.

The outlook of the speech focussed on 2026, a year which, according to Merz, could be a moment of new beginnings for Germany and Europe. This requires trust in Germany's strength, in reforms and in democratic processes, even if these are often lengthy and conflict-ridden, Merz pointed out.