German Chancellor Angela Merkel has "grave doubts" about a changing approach to global affairs in which compromise and multilateralism seem to be lacking. "There is a new approach that we see in the world today, an approach that harbors doubts as to the validity of the international system, they say 'shouldn't we look after our own interests first' and then out of that develop an order that is good for all," she told an audience at the World Economic Forum in Davos, Switzerland on Wednesday. "I have my grave doubts that this is the right way to go about it," she said via a translation. "I think (that when it comes to) our national interests — I think we should always understand them in such a way that we always remember that others also have their own vested interests, factor them in, and then shape a win-win situation that will guide us in international politics."

German chancellor Angela Merkel delivers a speech during the World Economic Forum (WEF) annual meeting, on January 23, 2019 in Davos, eastern Switzerland. Fabrice Coffrini | AFP | Getty Images

Nonetheless, Merkel said there was room to reform international institutions. "I think we ought to say we are ready to look at established institutions but reform them so that the balance of power is actually realistically reflected in the way that they are built up." Merkel's speech to the WEF comes at a time of political upheaval in Europe. Merkel announced in October that she would not seek re-election as either party leader or chancellor and that this term, her fourth in office which ends in 2021, will be her last.