By Sarah Marsh and Matthias Williams BERLIN (Reuters) -German Chancellor Friedrich Merz on Thursday said Europe was prepared to fight if necessary for its core values of freedom and democracy, in an explicit riposte to the Trump administration's repeated criticisms of the European Union.

German Chancellor Friedrich Merz has vowed support for the strengthening of Europe and its defence, as he honoured European Commission President Ursula von der Leyen at the the Charlemagne Prize award ceremony on Thursday.

THEODORE BUNZEL is Managing Director and head of Lazard Geopolitical Advisory. He has worked in the political section of the U.S. Embassy in Moscow and at the U.S. Treasury Department.

The safety of Germany's gold reserves held overseas and in New York in particular, until recently mainly a talking point for the country's far-right party and gold bugs, is becoming a matter of public debate with Donald Trump back in the White House.

As Germany’s new chancellor increases military spending, he has presided over the activation of a German tank brigade based in Lithuania and raised alarms about the threat from Russia.

European Commission President Ursula von der Leyen has received the International Charlemagne Prize. The annual award is given for contributions to European unity.

Germany is reprising its role as the world's biggest creditor for the first time since 1991 - but seismic global policy changes suggest it might not be back in the seat for long.

LISBON, Portugal — Portugal’s anti-immigration Chega party notched another political gain for Europe's far right on Wednesday after it was assigned the second-most seats in parliament — meaning it will become the head of the parliamentary opposition to the new government.

Germany sees a high bar for any intervention to support gas storage efforts this year, even if the country ends up missing its new legally-binding targets.

Russia has launched a blistering attack on Germany after it signed a new military deal with Ukraine in Berlin. Berlin unveiled a new arms package worth €5 billion (£4bn), after Chancellor Merz met President Volodymyr Zelensky in the German capital on Wednesday.