Merkel pleads for a new world order at Davos

23.01.2019, 19:40 | t-online.de

Decision-makers from politics and business meet in Davos. Chancellor Merkel called for a reform of the global architecture there.

At the World Economic Forum in Davos, Angela Merkel pleaded for a comprehensive reform of international institutions. "If existing institutions that set global guard rails are to be reformed, then we must be part of it," she said in her half-hour speech. The fragmentation of the world order can only be prevented if reforms ensure that institutions reflect the current balance of power, no longer just that of the Second World War.

Merkel gave her speech on the second day of the meeting. Once a year, entrepreneurs and politicians meet in the Swiss ski resort of Davos. The meeting with more than 3,000 participants lasts until Friday.

China's efforts as a "warning shot"

Many institutions had proved to be very cumbersome, Merkel said. For example, the World Bank's capital increase, which was decided last year, was overdue because the economic balance has shifted.

"If an existing system reacts far too slowly, the natural consequence is that others will make themselves felt with new institutions," she said. She referred, for example, to the Asian Investment Bank and other new formats with China at the centre. She sees this as a "warning shot". She did not say exactly what reforms she had in mind. Her speech remained very basic.

The need for a new order also results from completely new challenges, said Merkel. She cited digitization, especially artificial intelligence and the handling of private data, as particular challenges. But also genetic engineering and bioethics. Until now, there have been no answers to these challenges. "I don't see a global architecture yet," Merkel said.

Merkel: Do not ruin existing order

The task now is to develop a new architecture in order to be able to meet these new developments together. "But that presupposes that we do not ruin the existing order to the extent that nobody believes in new guard rails any more," said Merkel.

There was no good alternative to a multilateral order. One could only move forward "if we abandon our belief that we can develop on our own". She went on to say: "We have nationalist forces and we have to fight against them, but maybe this will make the battle order clearer and stronger". She said she would work for more cooperation.

Later in the day, the Chancellor plans to hold talks with international entrepreneurs about artificial intelligence and is scheduled to give a short speech on the topic of Europe at a dinner.

Several federal ministers and CDU leader Annegret Kramp-Karrenbauer are also expected from Germany. Economics Minister Peter Altmaier (CDU) will take part in a discussion on the economic future of Europe on Wednesday. 

Translated Version - Original here