German Chancellor Friedrich Merz said on Monday that the European Union must transform into a European defence union amid growing international security challenges.

He made the comment at speaking at a business summit on Monday (17 November), stressing that Europeans need to take new steps in response to the war in Ukraine, shifts in Euro-Atlantic relations, and China’s increasingly assertive posture.

Merz warned that relying on the U.S. for defence, on China for raw materials, or on Russia to return to the path of peace is no longer viable. He emphasised that Europe must act collectively and strengthen its own defence capabilities.

The Chancellor also highlighted Germany’s responsibility, as the European Union’s largest economy and most populous country, to take a leading role in Europe.

“We bear a far greater responsibility than anyone else to assume leadership within this EU. But that remains empty rhetoric if not backed by action,” he said.

Merz described Russia as the greatest threat to Europe, noting that its actions extend beyond Ukraine’s borders through hybrid attacks targeting European liberal democracies. He added that this threat affects not only Ukraine but also Europe’s democracies, freedoms, and way of life.

On transatlantic relations, Merz pointed to tensions with the U.S. over tariffs and policy decisions that have created a deep rift across the Atlantic. He also raised concerns about developments in Southeast Asia, saying China is becoming more repressive at home and more aggressive abroad.

Concluding his speech, Merz stressed that the global order is undergoing a fundamental shift and Europe must actively participate in shaping the new order. He called for strengthened unity among EU members and closer cooperation with partners such as the UK, Türkiye, and Norway.

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