At the Munich Security Conference, German Chancellor Friedrich Merz articulated the current geopolitical reality by reflecting on the changes since 1989, claiming that the previously established international order, albeit imperfect, no longer exists in its former capacity. This statement resonates with the anxieties of European politicians regarding the decline of the rules-based international order that has underpinned economic integration and prosperity for decades.

Merz described the contemporary era as one of 'great rivalry,' characterized not by convergence but by intense competition among major powers. He expressed concern that multilateral institutions no longer command the same authority and cohesion they once did, hinting at a broader trend of dysfunction within these organizations. The implications of this erosion extend beyond security policy; they fundamentally undermine economic systems, which increasingly rely on established norms and agreements.

One important aspect of this destabilization is its impact on global tax coordination. As the rules begin to falter, the previously agreed-upon measures, such as the OECD's 15% global minimum tax, face uncertainty. The article suggests that the weakening of these frameworks could lead to fragmented tax policies and increased competition among states, further complicating international economic relations and potentially exacerbating inequality.