German Chancellor Friedrich Merz warned on Thursday that the global order is unraveling at unprecedented speed, as great power rivalry replaces what he described as a more predictable international system.

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Speaking at the World Economic Forum in Davos, Merz said the world has entered a new era defined by power, strength and, when necessary, force, as Russia and China challenge US dominance and redraw geopolitical lines.

“The old world order is unraveling at a breathtaking pace,” Merz told delegates. “We have entered an era of great power politics. The new world of the great powers is founded upon power, strength and when necessary, force. It is not a cozy place.”

Merz said the United States’ long-held “pole position” is increasingly contested by Moscow and Beijing, forcing Washington to fundamentally rethink its foreign and security policy. Russia’s invasion of Ukraine, now approaching its fourth year, marked a turning point, he said, but added that the shift runs deeper than the war itself.

“China, with strategic foresight, has worked its way into the ranks of the great powers,” Merz said, describing a global landscape where rivalry is intensifying across military, economic and technological domains.

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Against this backdrop, Merz stressed that Europe must remain united and significantly strengthen its economic and security foundations.

“Europe and its like-minded partners must stand closer together,” he said, calling on EU member states to boost competitiveness and “invest massively in our ability to defend ourselves.”

He warned that a world governed solely by power carries serious risks, invoking Germany’s own history under Nazi rule from 1933 to 1945, which he said “pulled the world into a black abyss.”

At the same time, Merz urged Europe not to abandon the NATO alliance or its relationship with the United States, even as transatlantic tensions have grown since President Donald Trump returned to office for a second term.

Merz addressed recent frictions sparked by the Trump administration’s tariffs on the European Union and its insistence that the United States must acquire Greenland, a Danish territory, citing security threats from Russia and China in the Arctic.

“We welcome that the United States is taking the threat posed by Russia in the Arctic seriously,” Merz said, while expressing solidarity with Denmark and Greenland.

“Any threat to acquire European territory by force would be unacceptable,” he added.

Merz welcomed Trump’s remarks on Wednesday that the US would not seek to take Greenland by force, but warned that earlier threats of new tariffs linked to the issue would “undermine the foundations of transatlantic relations.”

Outlining Germany’s response to the shifting global order, Merz said Berlin would continue to support Ukraine “in its fight for a just peace” and pressed for Europe to become capable of defending itself independently.

He reiterated his intention to raise Germany’s defence spending to 5% of GDP, a sharp increase that would mark a major shift in European security policy.

Beyond defence, Merz highlighted corporate tax reform, major infrastructure investment and accelerated digital and artificial intelligence transformation as key domestic priorities.

At the European level, he pointed to recent and potential trade agreements, including the EU’s deal with the Mercosur bloc in Latin America and a possible new pact with India. He also called for a significant reduction in bureaucracy to make Europe more competitive.

Merz said EU leaders will meet at a special summit on February 12, alongside Italian Prime Minister Giorgia Meloni, with the aim of building a “fast, dynamic Europe and a service-oriented administration” in an increasingly unforgiving global environment.