Star Metro - Germany, EU, stable investment stops despite upheaval: Merz

Germany has been seeking to diversify its strategic and trade links to counter the perceived unreliability of the United States or China's growth as an economic rival.

Speaking in Singapore, the first stop of a visit that will also take him to Japan and South Korea, Merz said there were "no uncertainties in Europe".

"Under the federal government I lead, investment opportunities will be continuously improved," Merz said after meeting Singapore Prime Minister Lawrence Wong.

"All I can say is that I encounter a great deal of confidence here in Germany and in Europe as locations for investment."

The German leader's comments came despite fresh turbulence in Berlin, where his government has faced pressure -- including the resignation this month of a key minister from its junior coalition partner.

Merz's approval ratings have also weakened, while support for the far right has risen.

Elsewhere in Europe, France has seen widespread looting and protests over the past weeks.

But Singapore's Wong said investor confidence remained high in Germany and Europe.

"Our investors are long-term investors. They are not just investing for one election cycle," he said.

"Singapore believes in the longer term potential of Germany and Europe."

- 'Common interests' -

Experts say Germany viewed the democracies of Japan and South Korea and the business-friendly city-state of Singapore as like-minded partners.

Those nations had "common interests", Merz said.

"If we undertake these efforts together, then our independence from other countries will grow significantly," he said, without naming specific nations.

But in a speech, delivered later on Tuesday, Merz said the European Union's view on China has become "more nuanced".

"China's pivotal role in world politics raises deep questions regarding trade, security and international order," he said.

Beijing is Germany's top economic partner in Asia and has long been a major investment destination, but is also seen as a growing competitor.

"Wise China policy begins at home. This principle holds true in the Indo-Pacific as much as in Europe," Merz said.

"We will be better equipped to build balanced relations with China if we ourselves are united, strong, resilient, innovative and competitive."

The German leader will fly to Japan on Wednesday, where he will meet Prime Minister Sanae Takaichi, and visit South Korea on Thursday and Friday.

In South Korea, Merz will meet President Lee Jae Myung and visit the Demilitarised Zone (DMZ) separating North and South Korea.

Meanwhile, German President Frank-Walter Steinmeier is heading to China this week.

Steinmeier, the head of state, will deliver a speech at Peking University on Thursday and the following day meet Chinese President Xi Jinping and Premier Li Qiang.

D.Cameron--SMC