WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
Friedrich Merck, future German Chancellor and leader of the Christian Democratic Union (CDU), has warned that US President Donald Trump's trade policy increases the risk of a new financial crisis.
"The next financial crisis will definitely come. We just don't know when and why," Merck said in an interview with Germany's Handelsblatt.
"President Trump's policies increase the likelihood that this crisis will come sooner than we expect."
Merck specifically referred to Trump's tariff regime, which has shaken global markets over the past ten days due to fears of a recession. Trump subsequently eased some of the announced measures and on Friday exempted smartphones, computers and other electronics from the retaliatory tariff system.
New German Chancellor Seeks New Trade Deal with America
Merc, who reached a coalition agreement with the Social Democratic Party last Sunday, plans to take office on May 6. In the interview, he announced that his goal is a new, tariff-free transatlantic trade agreement, but also to conclude bilateral agreements with countries such as Canada, South Korea and India.
He called the halting of negotiations on the TTIP (Transatlantic Trade and Investment Partnership) in the 2010s a missed opportunity. Merck also said that Germany is open to importing American liquefied natural gas, which could have an impact on EU-US energy cooperation.
Calls for a unified European response
In an interview with Handelsblatt, he stressed that Europe must respond jointly to pressure from Washington and seize the opportunity to implement key internal reforms.
"The most important thing is the unification of European capital markets. This is where a new dynamic will develop in the coming months," Merck said, referring to talks with Emmanuel Macron, Donald Tusk and Keir Starmer.
"We were dragging our feet with the Americans"
At the same time, he said that he shared some of Trump's views, especially when it comes to European defense spending being too low:
"Yes, we were dragging our feet with the Americans," said Merz.
