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Global order in peril from lack of cooperation, says Merkel; slams China, U.S. for resisting AI regulation

February 26, 2026 5 min read International Relations Science & Technology GS2 (International Relations Multilateralism Governance) GS3 (Science & Technology AI Governance)
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What Happened

  • Former German Chancellor Angela Merkel delivered the inaugural Dr. Manmohan Singh Memorial Lecture in New Delhi on February 26, 2026, calling for multilateralism and international AI regulation, and warning that the global order is "in peril" from the breakdown of cooperative institutions.
  • Merkel praised Manmohan Singh's economic reforms and said his "warnings about protectionism are now coming true," drawing parallels between Singh's advocacy for open markets and the current wave of economic nationalism sweeping Western democracies.
  • She called for mandatory regulation of AI and social media platforms, saying "this is the first time in history that humankind is unable to rein in technology," and that governments must hold big tech firms accountable.
  • Merkel specifically criticised both China and the US for resisting international AI governance frameworks, saying no single country can solve the AI challenge alone — multilateral cooperation is essential.
  • She also expressed relief that the India-EU Free Trade Agreement had been concluded (in early 2026), calling it a "marathon of negotiation" that would strengthen the global rules-based trade order.

Static Topic Bridges

AI Governance: The Global Regulatory Landscape

The question of how — and by whom — AI should be regulated is one of the defining governance debates of the current era. Merkel's call for international AI regulation comes as individual countries and blocs pursue divergent approaches, creating a fragmented governance landscape.

  • EU AI Act (2024): The world's first comprehensive binding AI regulation. Entered into force August 1, 2024; fully applicable August 2, 2026. Uses a risk-based classification: Unacceptable Risk (prohibited, e.g., social scoring), High Risk (stringent requirements), Limited Risk (transparency obligations), Minimal Risk (unregulated).
  • Council of Europe Framework Convention on AI (September 5, 2024): First legally binding international treaty on AI — covering human rights, democracy, and rule of law; open to non-EU signatories.
  • US approach: Primarily relying on executive orders (Biden's AI Executive Order, 2023) and voluntary commitments from industry; resistant to comprehensive legislation; Trump administration rolled back Biden's AI governance order in 2025.
  • China's approach: Implemented targeted AI regulations (generative AI regulation, deep synthesis rules) focused on content control and national security, not a comprehensive risk-based framework.
  • India's approach: AIRAWAT national AI infrastructure; MeitY guidelines (2023) on responsible AI; Digital India Act under development — no binding AI legislation yet.
  • Multilateral gaps: The G7 Hiroshima AI Process (2023) and the GPAI (Global Partnership on AI, 44 members) provide forums but lack binding authority.

Connection to this news: Merkel's call for the US and China to join international AI governance efforts directly addresses the two largest abstainers from the EU-led regulatory model — without their participation, any international framework remains ineffective.

Dr. Manmohan Singh's Economic Legacy and Multilateralism

Manmohan Singh (1932-2024) was the architect of India's 1991 economic reforms as Finance Minister and the Prime Minister who navigated India through the 2008 global financial crisis. His legacy is invoked by Merkel precisely because he embodied the case for open, rules-based international economic engagement.

  • As Finance Minister (1991-1996) under PM P.V. Narasimha Rao, Singh initiated the LPG (Liberalisation, Privatisation, Globalisation) reforms: abolished the import licensing regime (Licence Raj), devalued the rupee, reduced import duties, invited foreign direct investment.
  • The 1991 reforms were a response to a balance of payments crisis; India's foreign exchange reserves had fallen to approximately 2 weeks of import cover.
  • As PM (2004-2014), Singh navigated the India-US Civilian Nuclear Agreement (123 Agreement, 2008) — a landmark in India's integration into the global non-proliferation regime.
  • Singh was a consistent advocate for multilateral institutions — the WTO, IMF, World Bank, and the UN — and wrote extensively about the dangers of economic nationalism.
  • The Dr. Manmohan Singh Memorial Lecture series was established by the Indian government following his passing on December 26, 2024.

Connection to this news: Merkel's invocation of Singh's legacy in the context of rising protectionism and failing multilateralism makes the lecture a political statement — positioning India's founding economic reformer as a counter-symbol to the Trump/Navarro economic nationalist wave.

India-EU Relations and the Free Trade Agreement

The conclusion of the India-EU Free Trade Agreement (referenced by Merkel) is a significant development in India's trade policy, providing a major alternative market to the US as trade tensions rise. The FTA also represents a deepening of the India-EU "Strategic Partnership."

  • India-EU FTA negotiations were launched in 2007, suspended in 2013 due to disagreements on tariff coverage, investment protection, and intellectual property — and relaunched in 2022 after a 9-year break.
  • The concluded FTA covers goods, services, and investment; it gives Indian goods preferential access to the EU's $18 trillion economy (world's largest single market by GDP).
  • Key sensitive sectors in negotiations: India's agricultural products (EU sought access), EU's automotive sector (India resisted), pharmaceutical patents (India's generic industry concerns), and data governance.
  • EU is India's second-largest trading partner (after US, ahead of China); bilateral trade in goods and services was approximately €120 billion in 2023.
  • The FTA's conclusion in 2026 provides Indian exporters with tariff concessions in EU markets — critical diversification given US tariff volatility.

Connection to this news: Merkel's satisfaction at the India-EU FTA's conclusion reflects Germany's (and Europe's) strategic interest in deepening ties with India as a counterweight to China and as a partner in maintaining the rules-based trade order that Merkel sees as under threat.

Key Facts & Data

  • Event: Inaugural Dr. Manmohan Singh Memorial Lecture, New Delhi, February 26, 2026.
  • Speaker: Former German Chancellor Angela Merkel.
  • Dr. Manmohan Singh: Finance Minister 1991-1996 (LPG reforms); Prime Minister 2004-2014; passed away December 26, 2024.
  • EU AI Act: entered into force August 1, 2024; fully applicable August 2, 2026.
  • Council of Europe AI Treaty: first binding international AI treaty; opened for signature September 5, 2024.
  • India's 1991 crisis: foreign exchange reserves fell to approximately 2 weeks of import cover.
  • India-EU FTA: negotiations relaunched 2022; concluded early 2026 (per Merkel's statement).
  • EU-India bilateral goods and services trade: approximately €120 billion (2023).
  • GPAI (Global Partnership on AI): 44 member countries across six continents; integrated with OECD in 2024.
  • India's NDC: 50% non-fossil electricity by 2030; net-zero by 2070.