It’s a thinly veiled reference to Chinese threats to restrict access to rare earth metals and the tariff threats made by U.S. President Donald Trump. Merz also said the alliance could strengthen the World Trade Organization and seek to unblock the nomination of judges to the organization’s appellate body.
“Considerable concern” over Franco-German car deal
During his trip, however, Merz experienced firsthand just how difficult it is to put such an ambitious proposal into practice when special interests complicate an alliance of small and medium-sized powers.
This became most evident when the Asian countries issued a sharp protest over planned “Made in Europe” rules for the car industry. Under a proposal agreed by Merz and French President Emmanuel Macron, Brussels would restrict subsidies for cars to vehicles produced inside the EU, Switzerland and the U.K., putting foreign manufacturers at a disadvantage.
In polite but direct terms, South Korea’s President Lee Jae Myung told reporters he had “asked Merz for support so that Korea would be treated like the EU member states.” A similar complaint was voiced in Japan.
“That was, in fact, a topic that surprised me a bit, given the intensity with which it was presented,” Merz told reporters before returning to Germany on Friday evening. He admitted that the Franco-German proposal had “sparked considerable concern in the region — in Singapore, Japan, and Korea — that we may be facing a new wave of protectionism in Europe, that we are closing ourselves off from other countries.”
Merz vowed to take those complaints “very seriously” and raise them at the next EU leaders’ summit. Yet they are a sharp reminder of how much industry-specific details can hamper the implementation of his proposed broader alliance.
The chancellor’s trip also revealed challenges when it comes to security cooperation: A request for Japan to supply Patriot anti-aircraft missiles to Ukraine fell flat. And it remains unclear whether Tokyo continues to contribute several billions to a new Ukraine loan next year, as Brussels hopes.
A Japanese diplomat, granted anonymity to discuss sensitive matters, posed a different question to the German delegation: “How exactly will you help us if China attacks Taiwan?”
