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At the World Economic Forum in Davos 2026, German Chancellor Friedrich Merz delivered a blistering critique of the European Union, labeling Brussels the "world champion of overregulation." Warning that Europe is unprepared for a harsh new era of "great power politics," Merz announced a decisive alliance with Italian PM Giorgia Meloni. The leaders will convene a special summit on February 12 at Alden Biesen to push for radical deregulation and capital market independence. Merz also slammed the European Parliament for blocking the EU-Mercosur trade deal, vowing to bypass obstacles to restore Europe's competitiveness against the US and China