Bilateral relations between Germany and Italy are better than they have been in a long time. "Merz and Meloni – is a new duo emerging in the EU?" asked the German daily Handelsblatt this week.

The latest escalation between the European Union and the United States over US President Donald Trump's demand for Greenland has added significance to Chancellor Friedrich Merz's visit to Italy this week.

For German politicians, France has long been the closest partner in Europe. When Giorgia Meloni became leader of a right-wing coalition in Rome in 2022, she was met with skepticism by Germany's center-left government at the time.

The first woman to head an Italian government is the leader of Fratelli d'Italia party (Brothers of Italy), which is sometimes described as right-wing extremist, sometimes as post-fascist, and at the very least as right-wing nationalist. The party is — or was — regarded by German centrist politicians as roughly equivalent to the far-right populist Alternative for Germany (AfD): a party they want nothing to do with.

Meloni maintains contacts with Trump and the EU

Meloni, who has openly expressed admiration for Italy's dictator Benito Mussolini, initially confirmed this impression. Her slogan "God, Fatherland, and Family" is the motto of Meloni's party, reflecting its traditionalist stance based on Christian identity, national pride and traditional family structures, and opposition to globalism. Meloni was initially critical of the EU and forged close relations with US President Donald Trump. Pictures of the two of them, smiling broadly, demonstrating how well they get along, further cemented Meloni's outsider position in the EU.

Hungary's Prime Minister Viktor Orban, another of Trump's favorites, is also an outsider in the EU. But there are crucial differences. Unlike Orban, Meloni supports Ukraine in its war of defense against the Russian invasion and has spoken out in favor of making Ukraine a candidate for EU membership. Italy's economic weight — it is the third-largest economy in the eurozone after Germany and France — also means that other EU governments can not afford to ignore her.

Meanwhile Meloni, who previously wanted to lead Italy out of the EU, has become increasingly pragmatic and constructive at the European level. This has also been recognized by Germany's conservative-led government, for example, when Meloni recently secured the necessary majority of votes for the free trade agreement between the EU and the South American Mercosur countries. Germany's longtime close partner, France, opposed the agreement, but was outvoted.

Merz and Meloni attempt to de-escalate

Over the years, Meloni has established a strong position that is recognized by Trump, Merz and other European heads of government. Last spring, she attempted to mediate in the customs dispute between the US and the EU.

Most recently Trump threatened punitive tariffs on anyone opposed to his acquisition of the Danish island of Greenland, although he backtracked again at the World Economic Forum in Davos. While the threat was still in the air and other European politicians, including German ones, were brandishing the cudgel of counter-tariffs, both Merz and Meloni warned against a total rift with Trump.

Both fear that a trade war would cause serious economic damage to their battered, heavily indebted economies. They worry even more about losing the US as a protective power.

There is clearly a "communication problem" between Trump and the Europeans, Meloni said a few days ago. That was putting mildly what was probably the biggest crisis in transatlantic relations since the end of World War II. Now, according to Meloni, it is necessary to "resume dialogue and avoid escalation." Merz has said much the same thing.

Germany was affected by Trump's tariff threats, Italy was not

In the heated atmosphere, Italy had offered to mediate. German government spokesman Stefan Kornelius welcomed the offer. "The Italian prime minister has also spoken to the US president on the phone. That is always very helpful," he said.

Unlike Germany, Italy had not contributed any soldiers to the reconnaissance mission to Greenland sent by several NATO countries. As a result, it was not affected by the US tariff threat.

The governments in Berlin and Rome both want to work together to promote competitiveness and reduce bureaucracy within the EU. In a position paper, they warn that the European Union risks falling behind the US and China if swift action is not taken.

In his speech in Davos on Thursday, Merz said that the joint German-Italian proposals would be presented at a special EU summit that he initiated, due to take place in February.

Manfred Weber, head of the conservative bloc, the European People's Party, in the European Parliament, has been calling on both Germany and Italy to expand their relations along the lines of the Franco-German friendship. Speaking to the newspapers of the Funke Media Group, Weber said, "from security and trade issues to combating illegal migration and ensuring the future competitiveness of our economies, Europe benefits from close cooperation between Germany and Italy."

Such sentiments would have been unthinkable at the beginning of Meloni's term. The "post-fascist," as she was often called back then, has now become a sought-after pragmatist.

This article was originally written in German.

While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.