Right Way to Go: Merz Welcomes Trump's Retreat on Greenland

DAVOS: German Chancellor Friedrich Merz on Thursday welcomed US President Donald Trump's decision to back away from threats to seize Greenland by force from ally Denmark, calling it "the right way to go".

"Any threat to acquire European territory by force would be unacceptable," Merz said at the World Economic Forum in Davos.

"New tariffs would also undermine the foundations of transatlantic relations. If they are put in place, Europe's answer would be united... measured and firm."

Trump at the weekend threatened to hit Germany and other European countries that had rallied around Greenland -- an autonomous territory of NATO member Denmark -- with hefty new tariffs from next month.

Europe's leaders responded by raising the prospect of hitting back with an EU trade weapon referred to as a "bazooka" designed to deter economic coercion against the bloc.

Trump ultimately backed down on his threats, announcing Wednesday a vague deal aimed at ensuring security of the Arctic island.

Despite the anger triggered in Europe by Trump's escalating sabre-rattling over Greenland, Merz also welcomed that the United States was "taking the threat posed by Russia in the Arctic seriously".

The conservative German leader vowed that NATO allies would jointly "protect Denmark, Greenland, the north from the threat posed by Russia".

"We share the conviction that as European NATO allies, we must do more," he said.

"We will do more. Our neighbours and partners in Europe, including Denmark and the people of Greenland, can count on our solidarity."

Trump has ramped up pressure on the United States' NATO allies to spend more on defence since returning to office, and most have committed to hitting higher targets.

Merz said "we should not give up on NATO.

"We must repair the trust on which the alliance is built. Europe knows how precious it is."