Bloomberg: Chancellor Merz pushes to reclaim Berlin’s influence in EU decision-making

German Chancellor Friedrich Merz is signalling a bold shift in Europe’s power balance, aiming to restore Berlin’s influence over key EU decisions and push back against European Commission President Ursula von der Leyen’s centralised approach, Bloomberg analysts claim.

Since taking office in May, Merz has publicly challenged von der Leyen on issues including trade, the EU budget, green policy, and defence, emphasising national governments’ authority over Brussels.

Speaking to business leaders, he declared: “We must now put a stick in the wheels of this machine in Brussels,” underscoring his intent to halt the EU’s federalist momentum.

Merz’s vision prioritises swift, bilateral economic deals, flexibility for member states, and pragmatic solutions over long, bureaucratic negotiations. For example, he rejected von der Leyen’s July proposal to expand the EU budget to €2 trillion and introduce new taxes, and criticised the EU-US trade negotiations, warning that tariffs could harm the German economy.

The chancellor is also acting with domestic considerations in mind, seeking to boost Germany’s contracting economy and counter the rising influence of the far-right Alternative for Germany party, which now polls ahead of Merz’s CDU bloc.

On defence, Merz has countered von der Leyen’s proposals for a Commission-led EU troop deployment to Ukraine, insisting Germany retains final say. Berlin is also pressing for governments to control arms purchases as Europe invests heavily in new military spending.

A potential divide may emerge over Israel, as the Commission proposes restricting some trade privileges, with Merz weighing CDU and coalition pressures ahead of the EU summit in Copenhagen on October 1.

Merz and von der Leyen, though from rival CDU factions, have maintained a working relationship, coordinating strategies even before he became chancellor. Yet, Merz’s assertiveness marks a sharp contrast with former Chancellor Olaf Scholz, who rarely intervened in Brussels meetings.

While Merz continues to praise von der Leyen’s leadership, he argues that Brussels is overreaching: “Europeans feel Brussels is increasingly intervening in people's everyday lives with competencies that this EU simply does not have.”

His actions aim to re-centre decision-making in Berlin, defining a more national-focused European vision while keeping Germany at the heart of the EU’s agenda.

By Tamilla Hasanova