Forging Common Ground

Friedrich Merz is on the cusp of becoming Germany’s tenth postwar chancellor. He is expected to take office on May 6, just two days before the 80th anniversary of the end of World War II in Europe. With a recognition that the United States and its allies defeated Nazi tyranny, he and his fellow Germans will hold commemorations and may well become nostalgic for the decades that followed the end of the war. Washington went on to become West Germany’s mentor and protector, and a key driver of reunification in 1990. Germans remain grateful for the sacrifices that that entailed, even as their faith in their long-term partner now wavers.

During his first 100 days in office, President Donald Trump, through word and deed, has stripped away the rhetorical transatlantic security blanket that comforted Germans for decades. His demands for a more balanced relationship with Europe challenge long-held German assumptions about American values, attitudes, and policies toward allies in Europe, and Germany in particular. Vice President JD Vance’s speech at the Munich Security Conference, which questioned European democratic standards, reinforced growing doubts. At the same time, the White House’s aggressive steps on trade are another expression of a deep US frustration with Europe, and reflect the questions that many Americans have about the importance of the transatlantic relationship. 

Germans have been shocked by this and fear an American withdrawal from Europe. The sharp turns in US domestic policy have also generated disappointment in a country that many Germans once deemed “exceptional” despite decades of transatlantic policy differences and spats.

The result of all this is a need for Germans to consider their core national interests and the extent to which they overlap or diverge with current US policy. Washington, after all, has been doing just that.

Merz has recognized the reality of the situation and has called for Germany to become more independent of direction from Washington. But he remains a believer in the transatlantic relationship and, as such, has an opportunity to reshape and redefine this vital relationship. One of his priorities as chancellor will be to explain to Germans and Americans that the relationship between their countries remains relevant and vital, and must continue even as both undergo political, economic, and social transformations.

The foundation for making that case is rooted in a broad mix of shared challenges in domestic and foreign policy. These include restoring economic growth and prosperity, balancing global trade relations, exploring the boundaries of artificial intelligence and other new technologies, managing migration trends, and sustaining global stability by preventing global conflicts. In making this case, Merz will need to focus on the long-standing and deep ties between two of the world’s three largest economies and the personal connections forged by decades of engagement between many Americans and Germans.

If successful, Merz will convince Trump to prioritize building on those foundations by recognizing bilateral accomplishments and a mutual need for reform. The new chancellor’s own successful business background should help position him with Trump as someone who can restore vitality and balance to the German-American economic relationship. A candid approach to dealing with the US trade deficit with Europe but a surplus in services can be a basis for finding common ground for continuing to pursue interdependent prosperity. Germany is already the fourth-largest foreign investor in the United States, generating over 1 million American jobs, and the United States is Germany’s third-largest foreign investor (and its largest non-European investor).

A further tactic that Merz can use with Trump is to note their similarities. Both men were recently elected by a populace frustrated by inflation and other economic struggles, and concerns about border control. Both also understand that Germany, and Europe more broadly, have long benefitted from an American security umbrella. Unburdened by a political past, Merz can and should freely acknowledge the imbalance and then note one big step he has taken, even prior to assuming power, to correct this: getting parliamentary approval for exempting defense spending from Germany’s constitutional debt brake. This could be a game changer if used properly to position the country to assume a much larger share of Europe’s defense burden that the United States has borne until now. 

Merz and Trump also share similar national security concerns, particularly regarding China and Russia. By sharing the defense burden more equitably and framing Germany’s approach as “your problems are our problems”, Merz would offer Washington a strong, reliable partner with aligned views.

Lastly, the new chancellor could take advantage of upcoming symbolic events to demonstrate a new yet still close relationship. The 250th anniversary of American independence in 2026, an event that Trump wants to use to showcase American greatness, offers an ideal opportunity for this. The Merz government should use the milestone to again express gratitude for American sacrifices while making a grand gesture to solidify economic ties with a White House that prioritizes business deals. Berlin could offer to facilitate further investment to create, in reference to the US anniversary, 250,000 American jobs. That is language that two businessmen can appreciate.