German Chancellor Friedrich Merz said on Saturday that Europe remains committed to a strong NATO alliance and aligns with Washington in seeking an end to the war with Iran and preventing Tehran from developing nuclear weapons.
Speaking alongside Swedish Prime Minister Ulf Kristersson in Stockholm, Merz framed the transatlantic relationship as vital for the future. He said Europe wanted to "keep this alliance alive for the future," acknowledging that relations with U.S. President Donald Trump have become more strained amid the conflict.
Merz acknowledged differences between allies while underlining a shared end goal. "We know that there are some differences. We know that we are seeing challenges, all of us, but our final goal is to bring this conflict to an end and to guarantee that Iran is not able to produce nuclear weapons," he said.
The chancellor's remarks follow reports that President Trump ordered the withdrawal of 5,000 U.S. troops stationed in Germany and cancelled planned missile deployments after criticism from Berlin over the U.S.-Israeli campaign against Iran. European allies are reportedly expecting further U.S. troop withdrawals from Europe.
On NATO's role, Merz said the alliance's chief concern is preserving a "unity of purpose" among member states. He stressed that Europe remains highly interested in continued U.S. military support as governments across the continent accelerate defence spending.
Merz also pointed to Sweden and Finland as contributors to strengthening NATO's European pillar. He said their membership had bolstered Europe’s collective defence posture at a time when, in his words, European governments are responding to what he described as a growing threat from Russia.
Contextual note: The statements were delivered publicly in Stockholm while Merz stood with Sweden's prime minister. The chancellor addressed both the immediate diplomatic frictions with the United States and longer-term defence priorities within Europe.
Implications for markets and sectors: Merz’s comments highlight continued political attention on defence spending and transatlantic security ties, factors that can influence defence contractors, government bond markets in Europe, and regional geopolitical risk premia.