From August 15, 2001, to February 28, 2005, Coats was United States Ambassador to Germany. As ambassador during the lead-up to the Iraq War, he unsuccessfully pressured the Government of Germany led by Chancellor Gerhard Schröder not to oppose the war, threatening worsened U.S. relations with Germany. As Ambassador he also played a critical role in establishing robust relations with then opposition leader Angela Merkel, who approved the Iraq war, and in the construction of a new United States Embassy in the heart of Berlin next to the Brandenburg Gate.