Merkel Cautions Europe on Balancing Act in Bipolar World
Merkel Cautions Europe on Balancing Act in Bipolar World
(Bloomberg) --
German Chancellor Angela Merkel has urged the European Union to be smart in balancing security interests raised by Washington with economic opportunities provided by China as Brussels establishes regulations for the next generation wireless network.
”The bigger economic might of the United States of America can of course set certain standards,” she told the World Economic Forum in Davos. “That’s why we as Europeans must decide smartly, how we want to deal with Chinese offers in the age of digitalization.”
In the twilight of her political career, Merkel has been preoccupied with the breakdown of multilateralism and the post-World War II order that helped ensure stability and prosperity in Europe. She has sought to balance opposing interests from its traditional U.S. ally on the one hand, and Russia and China on the other.
Washington has been pressuring Merkel to ban Chinese Huawei Technologies Co. from Germany’s fifth-generation network and to abandon construction of a gas pipeline to Russia.
While Germany is closer to the U.S. economic model, it shouldn’t close itself to opportunities provided by Chinese wealth creation, Merkel said on Thursday.
Europe should find an intelligent way to continue its partnership with the U.S., while not shying away from its own economic decisions, the 65-year-old former physicist told the forum.
”I don’t want a new bi-polar world, I say that quite openly,” she said.
As a result, Europe must be more present and react swifter on the global stage, while increasing its competitiveness and strengthening the common market.
Completing the integration of Europe’s banking system and capital markets can contribute to growth and stability and foster confidence in the euro, Merkel said, adding that the easing of trade tensions and an orderly Brexit helped reduce the risk of a potential recession in Germany.
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--With assistance from Birgit Jennen.
To contact the reporter on this story: Arne Delfs in Berlin at adelfs@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Raymond Colitt, Daniel Schaefer
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