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Germany and the Death of Globalism

Posted March 03, 2025

Emily Clancy

By Emily Clancy

Germany and the Death of Globalism

[Note from publisher Matt Insley: Emily Clancy, co-editor at Paradigm Pressroom’s 5 Bullets, joins us again this morning to flesh out the consequences from Germany’s emergency elections last weekend. Read how new leadership in the European powerhouse might impact relations with the United States.]

We pick up where we left off on Friday: The 2025 German election.

Namely, Chancellor-elect Friedrich Merz, a member of the Christian Democratic Union (CDU), has departed radically from his party’s traditionally strong affinity for the U.S.

For instance, Merz’s stance stands in sharp contrast to his personal hero and Germany’s former Chancellor Helmut Kohl (1982–1998).

Despite their shared party affiliation, Merz diverges from Kohl’s pro-American and pro-globalization views.

Merz, in fact, has taken an unprecedentedly confrontational stance towards the United States under President Donald Trump.

And the implications of Merz's position are far-reaching…

Your Rundown for Monday, March 3, 2025...

End of an Era: Globalism

Merz has made his position on Trump crystal clear.

  • In a statement after his election victory, Merz declared his “absolute priority” would be to “strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA.”

He warns that NATO may soon be obsolete, suggesting Europe should strengthen its defenses and potentially find a NATO replacement within months.

Merz also vehemently rejects Trump’s approach to Russia and Ukraine, calling any deal made over the heads of Europeans and Ukrainians “unacceptable.”

Economically speaking, Merz is also critical of the President’s renewed trade wars, which could result in economic losses of up to $408 billion for Europe over four years.

The old model of globalization that provided solid economic growth? Especially for Germany? Is now under severe threat.

Globalism, as Helmut Kohl saw it, refers to increasing interconnectedness between the world’s economies, often driven by international trade, technological advancements and shared ideas and resources.

But one could argue the Nord Stream pipeline sabotage — which impacted Europe’s energy security — has become a symbol of the vulnerabilities created by global interdependence.

The relationship between Germany and the U.S. is now at a historic low point, and Merz’s Germany is poised to lead a more independent Europe, potentially reshaping the global order.

The death of globalism, exemplified by the growing rift between the U.S. and its traditional European allies, marks a turning point in international relations.

With Merz at the helm, Germany is set to chart a course towards European sovereignty, likely at the expense of its long-standing transatlantic partnership.

Market Rundown for Monday, March 3, 2025

S&P 500 futures are up 0.45% to 5,985.

Oil is up 0.65% to $70.20 for a barrel of WTI.

Gold is up 1.30% to $2,885.30 per ounce.

Bitcoin, at the time of writing, is 1.30% to $92,885.

Emily Clancy

Emily Clancy
Editor, The Rundown

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