Munich, Germany ? Defense Secretary Donald H. Rumsfeld on Saturday came out against a German proposal that would create a trans-Atlantic rival to NATO to coordinate and develop policy among alliance nations.

Rumsfeld described the 26-country alliance, created in 1949 to confront the Soviet Union’s military strength in the Cold War, as still energetic and vital.

He also said the U.S.-European alliance could withstand its current differences, caused chiefly by opposition to the U.S.-led war in Iraq. In urging unified efforts to defeat terrorism and deter weapons proliferation, Rumsfeld took a conciliatory note toward America’s allies in Europe and even made light of his “old Europe” characterization of nations such as France and Germany that opposed U.S. policy in Iraq.

“That was old Rumsfeld,” he said, drawing laughs from officials at a security conference. “Our collective security depends on our cooperation and mutual respect and understanding.”

Germany’s defense minister proposed more direct coordination between the European Union and the United States. NATO “is no longer the primary venue where trans-Atlantic partners discuss and coordinate strategies,” said Peter Struck, reading a speech on behalf of German Chancellor Gerhard Schroeder, who was ill.

Struck also recommended appointing a commission to study the idea.

But Rumsfeld said: “NATO has a great deal of energy and vitality. I believe they are undertaking the kinds of reforms to bring the institution into the 21st century. The place to discuss trans-Atlantic issues clearly is NATO.”

NATO Secretary-General Jaap de Hoop Scheffer, citing missions in the Balkans, Afghanistan and Iraq, said the alliance “has seen more change and transformation over the past three or four years than in the many decades before. Let’s not say NATO is ill or terminally ill … this alliance is very alive.”

Rumsfeld advocated further cooperative efforts to counter the spread of weapons of mass destruction and terrorism, saying the coordination of legal, diplomatic and intelligence efforts was crucial.

The secretary singled out France and Germany for praise for their arrests of suspected Islamic extremists last month.