<p>Berlin: Europe is prepared to respond "within an hour" if the United States levies tariffs against the European Union, German Chancellor Olaf Scholz said in a pre-election debate with his conservative challenger Friedrich Merz.</p>.<p>In the first duel ahead of the February 23 election, Merz portrayed Scholz as a ditherer who had led Germany into economic crisis, while the Social Democrat presented himself as an experienced leader in command of the details.</p>.<p>Asked if the EU was ready with a targeted response if the U.S. imposed tariffs, Scholz, well behind Merz in the polls, said, "Yes ... We as the European Union can act within an hour."</p>.<p>U.S. President Donald Trump has repeatedly threatened to enact tariffs against the United States' largest trading partners, accusing them of free-riding on American prosperity. Trade policy is an EU competence, run by the European Commission in Brussels.</p>.Baltic nations cut ties to Russian power grid, prepare to link with EU.<p>Trump and the far-right Alternative for Germany, endorsed by his confidante Elon Musk, overshadowed the debate.</p>.<p>Merz, far ahead in the polls and the favourite to become Germany's next chancellor, expressed reluctance to raise taxes or borrow to reach the NATO alliance's defence spending target of 2% of gross domestic product, far short of the 5% Trump is demanding.</p>.<p>When Scholz said that would not be enough, Merz signalled his openness to discuss scrapping Germany's totemic spending cap - despite a manifesto pledge to keep the constitutional debt brake.</p>.<p>The two clashed over the AfD, with Scholz warning that Merz could not be trusted not to govern with the party. Merz ruled that out, blaming what he called Scholz's "left-wing" policies for fuelling the far-right party's rise to second in the polls.</p>
<p>Berlin: Europe is prepared to respond "within an hour" if the United States levies tariffs against the European Union, German Chancellor Olaf Scholz said in a pre-election debate with his conservative challenger Friedrich Merz.</p>.<p>In the first duel ahead of the February 23 election, Merz portrayed Scholz as a ditherer who had led Germany into economic crisis, while the Social Democrat presented himself as an experienced leader in command of the details.</p>.<p>Asked if the EU was ready with a targeted response if the U.S. imposed tariffs, Scholz, well behind Merz in the polls, said, "Yes ... We as the European Union can act within an hour."</p>.<p>U.S. President Donald Trump has repeatedly threatened to enact tariffs against the United States' largest trading partners, accusing them of free-riding on American prosperity. Trade policy is an EU competence, run by the European Commission in Brussels.</p>.Baltic nations cut ties to Russian power grid, prepare to link with EU.<p>Trump and the far-right Alternative for Germany, endorsed by his confidante Elon Musk, overshadowed the debate.</p>.<p>Merz, far ahead in the polls and the favourite to become Germany's next chancellor, expressed reluctance to raise taxes or borrow to reach the NATO alliance's defence spending target of 2% of gross domestic product, far short of the 5% Trump is demanding.</p>.<p>When Scholz said that would not be enough, Merz signalled his openness to discuss scrapping Germany's totemic spending cap - despite a manifesto pledge to keep the constitutional debt brake.</p>.<p>The two clashed over the AfD, with Scholz warning that Merz could not be trusted not to govern with the party. Merz ruled that out, blaming what he called Scholz's "left-wing" policies for fuelling the far-right party's rise to second in the polls.</p>