27 Feb 2026·Source: The Hindu

5 min

International RelationsEconomyNEWS

Merkel Highlights Stifled Growth Due to Protectionism at Singh Lecture

Angela Merkel warns protectionism stifles growth, praises India-EU FTA at lecture.

Former German Chancellor Angela Merkel stated that the global "order of cooperation" has been supplanted by "might makes right" during the Dr. Manmohan Singh Memorial Lecture. She blamed Russia for overturning territorial principles and the United States for weakening the United Nations and multilateralism. Merkel welcomed the finalization of the India-European Union Free Trade Agreement (FTA). She highlighted Dr. Singh's belief in cooperation over confrontation during the global financial crisis. Merkel also expressed disappointment that India did not initially support her climate change objectives. She warned about unregulated technology, particularly artificial intelligence, and the need for governments to protect their people's interests. Merkel also noted that democracy was under "pressure" across the world.

Merkel's address underscored the importance of multilateralism and cooperation in addressing global challenges, drawing on Dr. Manmohan Singh's legacy of prioritizing collaboration during times of crisis. Her remarks on the India-EU FTA highlight the potential for strengthened economic ties between the two regions. Her concerns about AI and the state of democracy globally add a layer of urgency to the need for responsible governance and international cooperation.

This news is relevant for India as it highlights the importance of international cooperation and the need for India to play a proactive role in addressing global challenges. It is relevant for UPSC exams, particularly in the International Relations section of GS Paper 2.

Key Facts

Angela Merkel delivered the Dr. Manmohan Singh Memorial Lecture.

Merkel welcomed the finalization of the India-European Union Free Trade Agreement (FTA).

Merkel criticized Russia for overturning territorial principles.

Merkel blamed the United States for weakening the United Nations and multilateralism.

Merkel credited Dr. Singh with the economic liberalization of 1991 in India.

Merkel warned about the advent of unregulated technology, particularly artificial intelligence.

Merkel noted democracy was under pressure across the world.

UPSC Exam Angles

GS Paper 2: International Relations - Role of international institutions, bilateral and multilateral agreements.

GS Paper 3: Economy - Impact of trade agreements on the Indian economy.

GS Paper 3: Science and Technology - Ethical considerations of artificial intelligence.

Potential Mains Question: Discuss the challenges to multilateralism in the 21st century and suggest ways to strengthen international cooperation.

In Simple Words

Basically, countries can choose to trade freely with each other or put up walls (like taxes) to protect their own businesses. Merkel said that putting up too many walls hurts everyone's growth. She was happy that India and Europe made a deal to trade more freely.

India Angle

For India, free trade agreements can mean cheaper goods for consumers and more opportunities for Indian businesses to sell abroad. However, it can also mean more competition for local industries, like farmers or small manufacturers.

For Instance

Think of it like a local kirana store competing with a big supermarket chain. The kirana store might need some protection to survive, but more competition can also mean better prices and choices for you.

These international trade deals affect the prices of things you buy, the jobs available in your community, and even the overall health of the Indian economy.

Free trade can boost growth, but protectionism can stifle it.

Former German Chancellor Angela Merkel stated that the global "order of cooperation" has been supplanted by "might makes right," blaming Russia for overturning territorial principles and the United States for weakening the United Nations and multilateralism. Speaking at the Dr. Manmohan Singh Memorial Lecture, Merkel welcomed the finalization of the India-European Union Free Trade Agreement (FTA).

She highlighted Dr. Singh's belief in cooperation over confrontation during the global financial crisis. Merkel also expressed disappointment that India did not initially support her climate change objectives.

She warned about unregulated technology, particularly artificial intelligence, and the need for governments to protect their people's interests. Merkel also noted that democracy was under "pressure" across the world.

Expert Analysis

Angela Merkel's lecture touches upon several critical concepts in international relations and global governance. The shift from an "order of cooperation" to "might makes right" highlights the weakening of established international norms and institutions. The finalized India-European Union Free Trade Agreement (FTA) represents a significant effort to foster economic cooperation between the two regions. FTAs, in general, aim to reduce trade barriers like tariffs and quotas, promoting increased trade and investment. The negotiation of the India-EU FTA has been ongoing for several years, facing various challenges related to market access, intellectual property rights, and sustainable development standards. Its finalization signals a renewed commitment to strengthening economic ties despite global uncertainties.

Merkel's reference to Dr. Manmohan Singh's approach during the global financial crisis underscores the importance of multilateralism in addressing economic shocks. The 2008 global financial crisis demonstrated the interconnectedness of the global economy and the need for coordinated policy responses. Dr. Singh, as the then Prime Minister of India, advocated for international cooperation and played a key role in shaping the G20's response to the crisis. His emphasis on cooperation over confrontation is a reminder of the value of collective action in managing global economic challenges.

Her disappointment that India did not initially support her climate change objectives relates to the broader issue of climate diplomacy and the challenges of achieving consensus on climate action. Climate diplomacy involves negotiations and collaborations between countries to address climate change. The Paris Agreement, adopted in 2015, is a key example of a multilateral effort to combat climate change. However, achieving ambitious climate goals requires overcoming differences in national priorities and development pathways. India's initial reluctance to fully embrace certain climate targets reflects the country's focus on economic development and energy access, while also emphasizing the principle of common but differentiated responsibilities.

Finally, Merkel's warning about unregulated technology, particularly artificial intelligence (AI), highlights the growing concerns about the ethical and societal implications of emerging technologies. AI has the potential to transform various sectors, but it also poses risks related to job displacement, bias, and privacy. Governments need to develop appropriate regulatory frameworks to ensure that AI is used responsibly and in a way that benefits society as a whole. This includes addressing issues such as data governance, algorithmic transparency, and accountability.

For UPSC aspirants, understanding these concepts is crucial for both prelims and mains. Prelims questions can focus on the definitions and characteristics of FTAs, the history and impact of the global financial crisis, the principles of climate diplomacy, and the ethical considerations surrounding AI. Mains questions can explore the role of multilateralism in addressing global challenges, the challenges and opportunities of India-EU economic cooperation, and the policy options for regulating AI.

Visual Insights

Key Takeaways from Merkel's Speech

Highlights from Angela Merkel's address on global cooperation, climate change, and technology.

India-EU FTA Finalization: Finalized
Merkel's Disappointment: India's initial stance on climate change objectives
Democracy Under Pressure: Global concern

More Information

Background

The concept of multilateralism is central to understanding Angela Merkel's remarks. Multilateralism, in international relations, refers to the practice of coordinating national policies in groups of three or more states, through ad hoc arrangements or formal institutions. The United Nations, established in 1945, is a prime example of a multilateral institution designed to foster cooperation and prevent conflict. Merkel's concern about the weakening of the UN and the rise of "might makes right" reflects a broader anxiety about the erosion of the multilateral order. The India-European Union Free Trade Agreement (FTA) has been a long-sought goal for both sides. Negotiations for the FTA began in 2007 but were suspended in 2013 due to differences over issues such as tariffs, data security, and intellectual property rights. The resumption of negotiations signals a renewed commitment to strengthening economic ties between India and the EU. A successful FTA could boost trade and investment flows, creating new opportunities for businesses and consumers in both regions. The global financial crisis of 2008 exposed the vulnerabilities of the global financial system and the need for coordinated policy responses. The crisis led to a sharp contraction in global trade and investment, and many countries experienced severe economic downturns. The G20, a group of the world's largest economies, played a key role in coordinating the global response to the crisis. India, as a member of the G20, actively participated in these efforts and advocated for policies to promote sustainable and inclusive growth.

Latest Developments

In recent years, there has been a growing debate about the future of multilateralism and the role of international institutions. Some countries have questioned the effectiveness of multilateral institutions and have pursued more unilateral approaches to foreign policy. The rise of protectionism and trade wars has also undermined the multilateral trading system. However, there is also a growing recognition of the need for international cooperation to address global challenges such as climate change, pandemics, and economic inequality. The India-European Union Free Trade Agreement (FTA) negotiations have gained renewed momentum in recent years. Both sides have expressed a strong desire to conclude a comprehensive and ambitious FTA. The negotiations are expected to cover a wide range of issues, including trade in goods and services, investment, intellectual property rights, and sustainable development. A successful FTA could significantly boost economic ties between India and the EU and create new opportunities for businesses and consumers. The development and deployment of artificial intelligence (AI) technologies have accelerated rapidly in recent years. AI is being used in a wide range of applications, from healthcare and education to transportation and manufacturing. However, there are also growing concerns about the ethical and societal implications of AI, including issues such as bias, privacy, and job displacement. Governments and international organizations are working to develop frameworks for responsible AI development and deployment.

Practice Questions (MCQs)

1. Which of the following statements is/are correct regarding Free Trade Agreements (FTAs)? 1. FTAs aim to reduce trade barriers between participating countries. 2. Negotiations for the India-EU FTA began in 2007 but were suspended in 2013. 3. FTAs always lead to balanced trade and equal benefits for all participating countries. Select the correct answer using the code given below:

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: FTAs indeed aim to reduce trade barriers such as tariffs and quotas between participating countries. Statement 2 is CORRECT: Negotiations for the India-EU FTA began in 2007 but were suspended in 2013 due to disagreements on various issues. Statement 3 is INCORRECT: FTAs do not always guarantee balanced trade or equal benefits for all participating countries. The outcomes depend on various factors, including the competitiveness of industries and the specific terms of the agreement.

2. In the context of the 2008 global financial crisis, which of the following actions reflects Dr. Manmohan Singh's approach, as highlighted by Angela Merkel?

A.Advocating for protectionist measures to shield the Indian economy.
B.Prioritizing unilateral actions to address the crisis.
C.Promoting international cooperation and coordinated policy responses.
D.Focusing solely on domestic economic reforms without engaging with global partners.

Show Answer

Answer: C

The correct answer is C) Promoting international cooperation and coordinated policy responses. Angela Merkel highlighted Dr. Manmohan Singh's belief in cooperation over confrontation during the global financial crisis, emphasizing the importance of multilateralism in addressing economic shocks.

3. Which of the following statements best describes the concept of 'might makes right' in the context of international relations?

A.The principle of adhering to international law and treaties.
B.The idea that powerful nations can disregard international norms and act unilaterally.
C.The importance of diplomacy and negotiation in resolving conflicts.
D.The promotion of multilateralism and cooperation among nations.

Show Answer

Answer: B

The correct answer is B) The idea that powerful nations can disregard international norms and act unilaterally. The phrase 'might makes right' suggests that power is the ultimate determinant of what is considered just or acceptable, often leading to the disregard of international norms and laws by powerful nations.

4. Consider the following statements regarding Artificial Intelligence (AI): 1. AI refers to the simulation of human intelligence processes by computer systems. 2. Unregulated AI development poses risks related to bias, job displacement, and privacy. 3. There is universal consensus among nations on the ethical guidelines for AI development and deployment. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: AI indeed refers to the simulation of human intelligence processes by computer systems. Statement 2 is CORRECT: Unregulated AI development poses risks related to bias, job displacement, and privacy, as highlighted by Angela Merkel. Statement 3 is INCORRECT: There is no universal consensus among nations on the ethical guidelines for AI development and deployment. Different countries and organizations have different perspectives and priorities.