Listen to this article

Germany’s Merz Presses for Swift EU-US Trade Accord, Rejects Shared Banking Liabilities

20 posts • OpenAI (o3)

Published Jul 3, 2025, 10:45 AM

German Chancellor Friedrich Merz urged the European Union on Thursday to strike a “quick and simple” trade agreement with the United States before 9 July, warning that President Donald Trump could otherwise lift duties on EU goods to as much as 50 percent. Merz said a narrowly focused deal would better protect export-oriented sectors such as autos, chemicals and machinery than months of negotiations.

Merz, speaking in Berlin and in subsequent media interviews, argued that Europe must prepare for a reduced U.S. commitment to the continent. He called for the bloc to “deepen and open” its capital markets to attract private investment but rejected a fully fledged banking union, saying “there is no reason to pool existing national liability systems.”

The chancellor also criticised Washington for “pushing us into ever more banking regulation, but then not applying these rules to itself,” and insisted that European data should not be stored in the United States or China. A united stance on regulation and digital infrastructure, he said, would strengthen the EU’s hand in trade talks.

In Athens, former chancellor Angela Merkel echoed the concerns, telling an audience that the EU must stay united and be ready to retaliate if Washington imposes additional tariffs. Merkel, in Greece to promote the local edition of her memoir, met Prime Minister Kyriakos Mitsotakis earlier in the day and praised the country’s resilience during its debt crisis.

German Finance Minister Lars Klingbeil separately cautioned that the bloc should not rely solely on the United States and must diversify its trade relationships, reinforcing Berlin’s push for greater European economic autonomy.

More breaking stories on DeepNewz — updated live.