Trump, Merkel in new war of words

♦ Trump lashes Germany for being 'captive' to Russia

♦ Germany was free of Russian control since the fall of the Berlin Wall: Merkel

♦ Nato invites Macedonia to start membership talks

US President Donald Trump traded barbs with German Chancellor Angela Merkel at a tense Nato summit yesterday after he accused Berlin of being "captive" to Russia and demanded it immediately step up defence spending.

The two-day meet in Brussels is shaping up as the alliance's most difficult in years, with Europe and the US engaged in a bitter trade spat and Trump demanding that Nato allies "reimburse" Washington for the cost of defending the continent.

Merkel shot back that Germany had the right to make its own policy choices, setting up an explosive one-on-one meeting with Trump later in the afternoon.

European alliance members were braced for criticism from Trump on defence spending, but his blistering attack on Germany at a breakfast meeting with Nato chief Jens Stoltenberg took the summit by surprise.

"Germany is a captive of Russia because it is getting so much of its energy from Russia," Trump said, taking particular aim at the proposed Nord Stream II gas pipeline, which he has previously criticised.

"Everybody's talking about it all over the world, they're saying we're paying you billions of dollars to protect you but you're paying billions of dollars to Russia."

Merkel, who grew up in Soviet-dominated East Germany, ramped up the febrile atmosphere of the summit with a sharp reply on arriving at Nato HQ.

"I myself have also experienced a part of Germany being controlled by the Soviet Union," she said.

"I am very glad that we are united today in freedom as the Federal Republic of Germany and that we can therefore also make our own independent policies and make our own independent decisions."

Trump has long complained that European Nato members do not pay enough for their own defence, accusing them of freeloading on America and singling out Germany for particular criticism.

Nato allies agreed at a summit in Wales in 2014 to move towards spending two percent of GDP on defence by 2024. But Germany, Europe's biggest economy, spends just 1.24 percent, compared with 3.5 percent for the US.

"These countries have to step it up -- not over a 10 year period, they have to step it up immediately," Trump said.

“We're protecting Germany, France and everybody... this has been going on for decades," Trump said. "We're not going to put up with it, we can't put up with it and it's inappropriate.”

Meanwhile, Nato yesterday invited Macedonia to start talks to join the alliance after Skopje reached a deal with Greece in a long-running row over the country's name.