Assessments

Germany

Bilateral Accommodation Trap

March 2026EuropeDecliningPF 68

The core dynamic is a strategic trap: Germany under Merz is optimizing for bilateral Washington access at a rate that erodes the European collective framework through which German power actually scales. Every time Berlin fails to defend an EU partner under US coercive pressure, it signals to smaller member states that European solidarity is conditional on American approval — which invites those states to cut their own bilateral deals, fragmenting the bloc Germany needs intact to project force. The China dimension compounds this: Beijing is actively probing the resulting fissures with targeted economic inducements, and while Merz pushed back publicly on Xi, the structural incentive for Berlin to hedge between Washington and Beijing grows as European cohesion weakens. The Spain-base-access flashpoint is the near-term indicator to watch — if Trump follows through on trade threats against Spain and Germany remains silent or neutral, the solidarity deficit becomes a precedent, not an incident. The deeper question is whether this is a deliberate Merz strategy (bilateral Atlanticism over collective European autonomy) or a tactical miscalculation that can be corrected. The pattern so far suggests the former, which means the Reach compression is structural, not episodic. China's state media calling for Germany to leave NATO is noise, but it indexes how visible the fault lines have become to adversarial actors seeking to exploit them.