Merz Declares End of Old World Order at Davos

At the World Economic Forum in Davos, German Chancellor Merz delivered a stark assessment of the current geopolitical landscape, declaring that the post-Cold War international system has effectively ceased to exist. His address marked a significant departure from previous diplomatic language, framing the present moment not as a period of adjustment but as a fundamental transformation of global power dynamics.

The Chancellor's speech, delivered on January 22, 2026, outlined a world where traditional alliances are being tested and new power centers are actively challenging the established order. This perspective carries particular weight given Germany's central role in the European Union and its historical position as a champion of multilateralism.

Merz characterized the current global environment as having entered an era of great power politics, a phrase that evokes the competitive dynamics of the early 20th century. This assessment suggests that the rules-based international system, which has largely governed global relations since 1945, is no longer the primary driver of state behavior.

The Chancellor specifically identified two major powers as the primary agents of this change: Russia and China. According to his analysis, these nations are not merely participating within the existing framework but are actively challenging the United States' long-held position as the world's dominant power. This challenge represents a move away from the unipolar moment that followed the Cold War's end.

The implications of this shift are profound for international stability and economic cooperation. The framework that has underpinned global trade, security guarantees, and diplomatic norms for decades is now being questioned and reshaped by these emerging power dynamics.

In light of this new reality, Chancellor Merz issued a clear call to action for the European continent. He argued that Europe can no longer afford to be a passive observer in this new era of competition. Instead, he outlined two critical areas where Europe must take decisive action to secure its future.

First, Merz emphasized the urgent need for Europe to boost its competitiveness. In a world where economic strength is increasingly linked to geopolitical influence, Europe must innovate and strengthen its economic foundations to remain a relevant global player.

Second, he called for a substantial investment in defense. This recommendation reflects a recognition that the security environment has become more unpredictable and that European nations must take greater responsibility for their own defense capabilities.

The Chancellor's message to the assembled global leaders and business elites was unambiguous: Europe faces a choice between adapting to this new reality or risking strategic irrelevance.

For decades, German foreign policy has been characterized by a commitment to diplomacy, trade, and international institutions. Chancellor Merz's speech at Davos signals a potential pivot toward a more assertive and pragmatic approach, acknowledging that economic interdependence alone may not guarantee peace or prosperity in a multipolar world.

The focus on defense investment is particularly notable. Historically cautious about military spending, Germany's leadership now appears to view a stronger defense posture as essential for protecting national and European interests in an increasingly contested international arena.

This shift does not necessarily mean abandoning diplomatic channels, but it does suggest that Germany is preparing for a world where power politics, rather than rules-based order, may be the dominant mode of international interaction.

The address at Davos, a forum known for its focus on economic cooperation, provided a sobering counterpoint to discussions about globalization and interconnected markets. Merz's framing of the situation as a fundamental unraveling rather than a temporary disruption sets a serious tone for future diplomatic and economic negotiations.

For allies and partners around the world, the German Chancellor's words serve as a warning that the international system is in flux. The call for Europe to strengthen its internal capabilities suggests a potential move toward greater strategic autonomy, reducing reliance on external powers for security and economic stability.

The long-term consequences of this shift remain to be seen, but the speech undoubtedly marks a significant moment in the evolution of European and global politics.

Chancellor Merz's declaration at Davos is more than a rhetorical statement; it is a roadmap for what he sees as necessary adaptation. The message is clear: the era of unchallenged Western dominance and predictable global rules is over, replaced by a more complex and competitive landscape.

The path forward for Europe, as outlined by the German leader, involves a dual focus on internal strength—through economic innovation and defense readiness—and a realistic assessment of external threats. How other European nations and global powers respond to this call will shape the international order for decades to come.