Impulse by Professor Volker Wittpahl, „AI, Disinformation and Stargate – What Global Threats is the European Economy facing?” In 2022, a fake video call between the mayors of Kyiv and Berlin, orchestrated by a comedian using deepfakes technology, exposed the vulnerability of even high-level officials. In another case, an AI-generated avatar duped a company into transferring USD25million to a fraudulent account. These are not just examples of online disinformation – they are indicators of a much broader threat.
AI operates on pattern recognition. Today, self-learning algorithms with feedback loops are becoming increasingly powerful due to the data they are fed.

From an economic perspective, the most valuable subject to monitor is the buyer – people themselves. Human behavior forms the most interesting and profitable dataset. Data brokers play a central role in this ecosystem. Acxiom, for example, reportedly held 3000 attributes on 7 million individuals across the US, Europe and beyond. Oracle, as of 2017, claimed to manage 30,000 attributes on 2 billion consumer profiles globally.

The data marketplace once known as Xandr (acquired and renamed by Microsoft) offered detailed customer profiles for hyper-targeted advertising. Even after the name disappeared in 2022, the business model persisted. Data brokers enrich profiles by purchasing information from various companies, including those within the EU. One common method of data collection is through mobile apps: upon installation, apps share a so-called “advertising ID” with data brokers. Firms like Data Stream aggregate this data and sell access – for instance, a €14,000 monthly subscription grants live data streams from over a million ad IDs.
A sample purchased from one of these brokers allowed investigators to trace employees from the BND (Germany’s federal intelligence service), Bundeswehr (military), and even members of parliament – identifying their home addresses, routines, and online habits. This is not a dystopian prediction; it’s a reality we’ve been living with for the past decade.
Every digital interaction – clicks, visits, likes, comments – is tracked, locked, and analyzed. This profiling determines not only the ads you see but potentially your access to services like insurance. A poor health profile may lead to denial of coverage.

AI introduces a new age of automated influence. Algorithms can now manipulate public opinion – pushing individuals toward belief in conspiracy theories or pulling them back from the brink. In controlled studies, fact-based chatbots have even managed to change the minds of conspiracy theorists.

This raises grave concerns for democracy. The tools of manipulation are becoming more refined. Trust in digital media is eroding. With AI, it is now possible not only to create fake news, but also to propagate it across hundreds of fabricated websites – making fact-checking virtually impossible. Meanwhile, phishing scams and spam emails are becoming indistinguishable from legitimate communication, escalating the threat.

We are not simply facing a technological shift, we are facing a fundamental transformation in how truth, influence, and privacy operate in society.

Q&A

What are the risks of not investing in AI and how can we counteract disinformation created by it?
Significant progress has been made. Large Language Models (LLMs) are now available as open-source tools, offering enormous potential – but also considerable risks. We must think carefully and strategically about where and how we deploy these technologies. China’s “DeepSeek” model has demonstrated that more efficient AI systems are possible, signaling the need for Europe to stay competitive and vigilant.

The developments in AI raise ethical and societal questions. Privacy might become something we must consciously pay for to protect ourselves and credible sources of information.

The Pandora’s box has been opened – we cannot go back. So how can we remain competitive, knowing the world is fundamentally changing?

Many tasks will be automated by AI. However, human centric roles – like caregiving and nursing – are unlikely to be fully replaced. Trust will gain new importance, and we may see a shift back to offline and personal interaction in certain domains.

From a strategic perspective, what must the EU prioritize to ensure economic stability and protect democratic institutions amid AI’s rapid evolution?
We need a more unified Europe – politically and digitally. Despite a common feeling of being “European”, national identities still dominate. Politicians often avoid deeper integration, fearing loss of sovereignty. Yet, without a stronger European identity and government, we will continue to struggle with 27 member states negotiating individual interest instead of pursuing shared goals. Bureaucracy must be reduced and our common values must be strengthened.

What can individuals do when facing massive data brokers and BigTech? Are regulations excessive or finally adequate?
I’ve learned a lot through self-experimentation and expert coaching. I wanted to understand: Can I make independent decisions about hardware, operating systems, and software? Is it feasible in daily life?
The answer is: yes – but it requires behavioral change. Using open-source tools helps tremendously, but privacy also depends on personal habits. With awareness and discipline, individuals can regain some control over their digital footprint.

LLMs are trained in unregulated settings. What happens when misinformation from platforms like X or Reddit becomes the “truth” in training data?
This is a real threat. Disinformation, if not addressed, could become the foundation of future AI models. The EU has already taken steps, but more must be done – both technologically and politically.

On the regulator side, we need to influence user behavior. Just like with junk food, harmful content may remain available – but we must educate and create responsible consumption habits.
On the tech side, the race will never be fully won. Therefore, trust and verified communication channels are crucial, especially in business. If internal communication with suppliers and partners becomes untrustworthy, the global economy could face collapse. In emergencies, secure communication must fall back on personal verification of trusted third parties. A “zero-trust” scenario must be considered.

Given our reliance on foreign providers for digital infrastructure, can we truly speak of European sovereignty?
There are already European solutions. The problem is that we still invite companies like Google and Microsoft to the table. An open-source path could be the “European way”. In the Baltics, this is already reality. In Germany only one federal-state – Schleswig Holstein – has moved toward open-source systems.

Open source is more than ideology; it offers resilience. Even if a provider disappears, the code remains usable. Europe should develop an open-source ecosystem – not 27 fragemented ones, but a single unified system.

What medium-term threats do we face from non-state actors? Foreign governments often use proxies – hacker groups that operate under the guise of cybercriminals. These actors carry out sabotage and espionage, especially targeting sectors like biotech. This is documented, for example, in Germany’s BSI reports. While labeled “cybercrime”, these are often acts of political and economic warfare.

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The Impulse “Estonia: Creating a Start-Up Ecosystem for European Innovation in Tech” by Mats Kuuskemaa,  Country Director e-Residency Estonia, guided the participants through Estonia’s recent history, its start-up ecosystem, and the concept of e-Residency. Over the past two decades, Estonia has developed a unified digital system that enables citizens to interact with the state for government services with remarkable efficiency.

In the early 1990s, Estonia faced a unique challenge: the economy was in a dire state, and the country needed to catch up with its more prosperous neighbor, Finland. The population was motivated and hungry to build new institutions and systems, drawing inspiration from global best practices. In this context, Estonia saw an opportunity to leap ahead.

By contrast, in Germany, there appears to be a lack of urgency or ambition. The system works, so there is little drive for improvement. But Estonia’s experience shows that adversity can foster innovation. Our legal system is based on German law, and our economic model was shaped by the IMF. In just three years, Estonia transitioned from full-scale communism to a free-market economy. While many businesses failed during this time, the economy eventually saw 7.7% growth sparring a dynamic business environment.

One area where Estonia could not copy others was digitalization. What began as a bold idea – to bring all government services online – was gradually implemented. E-tax systems were introduced, followed by digital elections, which have increased liberal voter turnout and boosted participation among younger generations.
It’s important to note that digitalization does not mean replicating bureaucratic processes online. It means rethinking systems from the ground up to make them more efficient. Civil servants in Estonia now focus on meaningful work instead of paperwork. Estonia even established an e-notary system and a data embassy in Luxembourg, ensuring access to national data even in times of crisis.
Estonia also has a unique corporate tax system: profits reinvested into the country are tax-free, which supports small business growth. The tax system is simple and time-efficient, allowing entrepreneurs to focus on building rather than compliance.

What is e-residency? E-Residency is a government-backed initiative that opens Estonia’s digital ecosystem to people around the world. It was initially envisioned as a tool for security and trust, and every applicant undergoes a background check. Today, roughly half of the e-Residency community comes from EU countries. It offers a streamlined way for entrepreneurs to quickly establish cross-border businesses and collaborate across ecosystems.
Estonia is one of the easiest countries in which to launch a company. In our start-up ecosystem, it is standard practice to grant employees stock options – something rarely feasible in many other EU countries. Without this, people often work for years in start-ups and leave with nothing, which is a lost opportunity.
Flexible labor laws are also crucial for start-ups and SMEs. They reduce hiring risks and allow companies to adapt quickly, which contributes to Estonia’s low unemployment rate. These conditions also make it easier for international talent to relocate.
In Estonia we’ve developed laws tailored to start-ups, including regulations for AI and venture capital. Investing in Estonian companies is straightforward, transparent and digital. Today, Estonia boasts around 10 unicorns – among them Wise, Bolt, Zego, Glia, Gelato and Skype. In comparison, a larger and wealthier city like Hamburg has only two.

This suggests that “hunger” and a low cost of failure are key ingredients for entrepreneurial success. As an e-resident, you can start your company immediately.

Estonia’s main competitors in ease of business formation include the US (especially Delaware) and Portugal. However, tax complexity in these countries can be a major deterrent. The time spent on tax compliance is time not spent on business development. Estonia’s system, by contrast, is fast and efficient. Our global e-Residency community has added significant diversity and innovation to the country.

Q&A

Success often invites criticism, especially from geopolitical adversaries. In 2007, Estonia experienced a large scale cyberattack that served as a wake-up call. Since then, NATO has established the Cooperative Cyber Defense Centre of Excellence in Tallinn. What is the scale of cooperation between Estonian startups and the government in the sphere of cybersecurity and cyber-resilience. How can Estonia improve the security situation for Europe in the Cyber-domain?

Estonia now maintains a high level of cyber-resilience and has developed a private-sector cyber army capable of responding to attacks in real-time. The country prioritizes cybersecurity at both governmental and business level. Our use of physical e-Residency ID cards and verification codes has helped reduce identity theft significantly.

Why haven’t other countries adopted e-Residency?

Some countries have begun to explore similar models – Dubai and Portugal, for example. However, Estonia’s program remains unique in that e-residents do not need to live in Estonia to benefit from its services. While other initiatives exist, Estonia retains first mover advantage and global recognition for its e-Residency concept.

Do you think that the mindset in Estonia is different from the mindset in for example Germany?

Culture and mindset play a significant role. Estonia wants Germany to thrive -our neighbor’s success is linked to our own. While Germany is making progress in digitalization (e.g., e-prescriptions), efforts are fragmented due to the federal structure, resulting in data silos and inconsistent integration.

True digital transformation must start with the user experience. Legislation should be designed with users in mind. Unfortunately, in many countries, the debate is overly focused on data protection at the expense of usability. Until decision-makers shift their perspective, true progress will be limited.

 You can view the full seminar here. We thank Professor Wittpahl and Mats Kuuskemaa for their participation.

Keynote by Patrick Lobis, Head of Representation at the European Commission in Austria: “The European Union and Global Challenges”
Patrick Lobis emphasized during his keynote, the importance of listening to the perspective of Young Europeans to better inform the political process in Brussels. He encouraged young leaders to voice their opinions, as dialogue is essential, especially in turbulent times where the rule-based international order is under threat.

Europe is facing a dramatic transformation of its economic and geopolitical model. The old approach – importing security from the US and cheap energy from Russia, and cheap labor from China while exporting high-quality goods and services – is no longer sustainable. The Russian threat marks a pivotal moment with no return to the old status quo.

The response must be collective, as no European nation-state can tackle these crises alone. The EU single market remains fragmented, and greater integration is needed, particularly in areas like military procurement, R&D, and technological innovation. Economies of scale are crucial if Europe wants to be rule-maker rather than a rule-taker.

Efforts are underway to reduce bureaucratic burdens to support innovation, especially in tech and green sectors.  Regarding EU unity, it is under pressure from external actors and internal populism. Russian propaganda and automated trolls pose significant risks to democracy. Europe must enhance its resilience through both technical solutions and strategic communication.

On the economic front, there is concern about the impact of the US elections and potential trade tensions. The EU opposes tariffs and advocates for diversified trade partnerships, remaining a stable and predictable market. Strengthening the single market remains a top priority to facilitate seamless business across member states.

Impulse by Christian Mandl, Head of European Policy Coordination Department at the Austrian Federal Economic Chamber (WKO): “Europe’s Resilience and Competitiveness in Geopolitics”

As geopolitical tensions intensify and economic landscapes evolve, Europe finds itself at a crucial turning point. In his presentation, Christian Mandl, Head of European Policy Coordination at the Austrian Federal Economic Chamber (WKO), outlined the challenges facing Europe’s competitiveness and resilience, and proposed policy directions to secure its future.

The European Union’s Competitive Struggles:

While Europe remains a strong economic force, Mandl warned that its future is uncertain. Asia’s continued rise, especially China’s technological advancement and strategic assertiveness, threatens Europe’ economic position. Countries like Austria and Germany have shown signs of economic stagnation over the past decade. Austria, deeply dependent on Germany (which absorbs 30% of its exports) suffers from economic downturns in its larger neighbor.

Protectionism is also on the rise globally. While the EU remains committed to open markets, it is increasingly vulnerable in a world where the US and China shield their economies. Europe’s dependency on imported raw materials and its soaring energy costs – exacerbated by the shift from pipeline gas to more expensive LNG – put it at a significant disadvantage.

Innovation and Capital: Europe’s Missing Pieces
A critical gap lies in Europe’s fragmented capital market. Startups and tech unicorns often relocate to the US due to easier access to seed and venture capital. Despite being on par with the US in terms of patent output, Europe trails significantly in commercializing innovation. Just 4 of the world’s 50 largest tech companies are European.

Internal Friction: Bureaucracy and Incomplete Integration

Mandl highlighted the paradox of the EU’s internal market – its greatest asset – being incomplete particularly in services. Excessive regulation, especially in sustainability and ESG standards, creates major burdens for businesses. Multiple EU directorates impose overlapping rules, leading to what Mandl called an “ESG Jungle”.

This complexity not only strains EU companies but also alienates international partners. For countries like Indonesia, Europe’s regulatory demands are seen as neo-colonial – imposing European values without offering incentives. This may push such partners towards less restrictive trading alliances.

A New Geopolitical Era

Mandl described a shifting global order, where the world is dividing along geopolitical lines. China’s alliance with Russia poses a strategic challenge to the West. The rise of BRICS+ -now including major energy exporters – signals the emergence of a potential new energy bloc (energy cartel) led by China, undermining the influence of the G7.
Meanwhile, the WTO’s relevance is fading as countries increasingly violate its rules with reciprocal tariffs and trade wars. The US and China’s decoupling is accelerating, with trade rerouted through intermediary countries like Mexico and Vietnam.

The EU’s Response: Reform and Strategic Investment

To address these challenges, the EU has launched initiatives such as the Competitive Compass and the Omnibus package, aiming to reduce bureaucracy, enhance regulatory coherence, and unlock the full potential of the internal market. Simplifying compliance – such as extending reporting intervals for SMEs – could alleviate some off the burdens that currently hinder innovation and growth.

On the Security front, initiatives like ReArm Europe and Readiness 2030 reflect a growing recognition that resilience requires not just economic strength but also military preparedness. However, financing remains a challenge: a quarter of the EU’s future budget is earmarked for paying back debt from the COVID-era Resilience Fund.

CONCLUSION: Europe’s Strategic Dilemma

Mandl’s message was clear: Europe must move faster, become more flexible and focus on completing its internal integration. It must strike a smarter balance between regulation and competitiveness and take concrete steps to strengthen its capital markets and innovation ecosystem.

In a world increasingly shaped by strategic competition and shifting alliances, the EU must define its role – not just as a regulator or a market, but as a geopolitical actor with the agility and unity to shape its own destiny.

Q&A

“What can Europe do to catch up?”

The United States and China are significantly ahead in many areas. However, there are niche sectors – such as quantum computing – where the EU still has the potential to compete. Europe should focus on its strength rather than attempting to rival global leaders where they already dominate. For instance, Austria’s Zeilinger, exemplifies Europe’s excellence in cutting-edge research. Building on such assets could help position the EU more strategically in the global tech landscape.

“Will defense and trade become more interconnected?”

Yes, this trend has already begun. Security concerns are increasingly linked to trade policies, even without new formal competences granted to the EU. Traditional notions of neutrality no longer suffice in aa world where defense capability underpins geopolitical influence. The UK’s departure from the EU was regrettable, as it – alongside France- was one of the Union’s few members with substantial military power. Without credible defense backing, trade positions lack weight on the global stage. However, it’s unlikely that member states will relinquish sovereignty over defense to the European Union in the near future.

“How can Europe remain open and competitive in the face of protectionism?”

Many countries, such as those in Mercosur, are still eager to pursue mutually beneficial trade agreements. Europe must avoid imposing its values in a way that feels like neo-colonialism. Instead of exporting a rigid value system, the EU should engage in partnerships based on mutual respect and pragmatism. While China will continue to seek deeper economic ties with Europe, such cooperation should be approached with strategic caution.

Impulse by Michael Saxl, Trade Policy Advisor at the Austrian Federal Economic Chamber (WKO): “Trade Wars, Sanctions & Tariffs: How can Europe reduce vulnerabilities to external pressures”

What has changed in the U.S. mindset?

The United States is increasingly looking to the past for answers to today’s economic challenges. The U.S. embraced tariffs as a central policy tool to address trade imbalances – particularly its persistent trade deficit.

How is the EU responding?

In contrast, the EU is pursuing a more cooperative approach, seeking to redefine and rebalance transatlantic trade relations through negotiation. While the situation is complex and lacks a single solution, a range of countermeasures is being considered. Some retaliatory, others strategic.

One major counter-strategy involved diversifying trade partnerships, particularly Asia. There is growing momentum behind the idea that the future of EU trade policy lies in stronger ties with Asian economies. India, for example, has shown considerable ambition in trade relations with Europe. However, negotiations remain technically challenging due to differing regulatory frameworks, particularly around the EU’s Carbon Border Adjustment Mechanism (CBAM), deforestation rules, and Trade and Sustainable Development (TSD) chapters, areas where many Asian partners have different priorities.

Progress in EU-Asia Trade Agreements

Despite these challenges, the EU continues to advance trade negotiations across the region. Agreements with Vietnam have already proven successful, generating further interest in EU partnerships. Ongoing negotiations with Thailand and Indonesia look promising. Japan and South Korea serve as strong examples of well-functioning EU-Asia trade relationships, highlighting the potential of such partnerships when aligned on key issues.

The EU-Mercosur Agreement

Meanwhile, the long-anticipated EU Mercosur Free Trade Agreement remains in limbo. The final decision lies with the European Parliament and the Council. Austria currently opposes the agreement, and Italy may become the pivotal voice. As a qualified majority is required, the outcome is uncertain but the decision-making process remains transparent.

Q&A

“Can Europe remain a credible geopolitical actor if it takes 24 months to respond to trade coercion, while others retaliate within 24hrs?”

Clearly nt. In today’s fast-paced geopolitical environment, speed is critical. The EU must become significantly more agile in responding to external pressure. While the Treaty of Lisbon served its purpose when adopted in 2007, the world has changed dramatically. The institutional framework needs to evolve accordingly to enabler quicker, more decisive action on trade and foreign policy matters.

“What challenges lie ahead for candidate countries in terms of economic and industrial transformation?”

The EU has become more cautious about enlargement to 20, 25 years ago. While the long-term political will to expand remains – especially in Brussels – there is a growing preference for a measured, merit-based approach. Austria has traditionally been a strong advocate for EU enlargement, particularly in the Western Balkan. However, some member states now favor a model where all candidate countries join simultaneously, which risks delaying progress. A more pragmatic approach would be to “unbundle” the Western Balkans and allow countries like Albania and Montenegro – who are significantly ahead in their reforms – to join individually, based on their own merit and readiness.

The seminar will begin with a keynote address by Mag. Patrick Lobis, M.P.P., Head of the Representation of the European Commission in Austria. This will be followed by presentations on Geopolitics, Tariffs and Trade from Mag. Christian Mandl (Head of EU Policy Department) and Mag. Michael Saxl (Policy Advisor) from the WKO (Austrian Federal Economic Chamber). Professor Michael Landesmann, Scientific Director at the Vienna Institute for International Economic Studies, will then explore Europe’s industrial policy in the evolving geo-political and geo-economic environment.

Iris Marlovitz, Head of Communication at the Enterprise Europe Network, will offer an insightful impulse on the European Network for SMEs. We will then welcome former Vice-Chancellor and current Chairman of GLOBSEC, Wilhelm Molterer, who will discuss how to finance competitiveness and defense.
After lunch, the participants will gain insights into Europe’s Sovereignty in the digital realm. Professor Volker Wittpahl will address global threats to the European economy, followed by Mats Kuuskemaa who will present Estonia’s successful tech start-up eco-system.
United Europe Board Member Barbara Tasch-Ronner will interview Danai-Magarita Budas, Deputy Director International Relations and Markets at the Austrian Federation of Industries (IV) on the occasion of the WTOs 30th anniversary and its ongoing crisis. The Seminar will conclude with a workshop led by Professor Paul Timmers and Georg Serentschy @WeltWert, focusing on the highly relevant topic of Eurostack – building a European alternative for technological sovereignty.

If you have any questions, please feel free to contact us. To apply please send your CV and a cover letter to events@united-europe.eu. The deadline for applications is March 27, 2025. To be eligible for travel and accommodation reimbursements, a United Europe membership is mandatory.

We look forward to welcoming you!

Panelists:

• Steffen Kampeter, CEO of the Confederation of German Employers’ Association
• Michael Bültmann, Managing Director at ABB E Mobility
• Dr Tobias Zimmermann, Head of Insights and Creation at The Stepstone Group

Moderator:
Dyria Sigrid Alloussi, Program Director at United Europe

Key Skills for Europe’s Competitiveness:
To remain competitive globally, Europe needs to foster problem-solving, collaboration, and teamwork skills. Businesses must tailor their strategies to their particular needs, as there is no silver bullet to solve the crisis. A shift towards fewer hierarchies and a focus on proactive problem-solving is essential. The term “war on talent” was first coined in Silicon Valley and indicates an emphasis on quality and the need for investment into talent.

Europe’s Standing:
A recent survey indicates that Europe has a strong foundation in attracting talent, with Germany ranking among the top five countries worldwide. However, countries like Canada, the US and Australia are taking a more active approach, positioning Europe as reactive in this global talent race.

Addressing the Workforce Gap
A compelling European narrative is needed to unify and attract talent to the European economy. While immigration is one tool, it won’t fully solve the problem. The panel emphasized the importance of mobilizing Europe’s existing workforce, enhancing productivity through AI, and encouraging flexibility and adaptability in the labor market.

Innovation Challenges
Innovation thrives with diverse leadership and access to capital, but Europe’s regulatory environment often hampers progress. While the US fosters a more open environment for technology driven innovation, European start-ups face challenges due to regulatory restrictions and risk aversion in venture capital markets. Innovation and necessary regulation should be harmonized to ensure both safety and space for technological progress in Europe.

Regulation vs Business Needs
For business innovation, governments should establish a balanced regulatory framework that minimizes risk without overreach. The panel noted that heavy regulation in Europe creates barriers for start-ups. However, countries like France and the Baltics are making strides by creating a more business friendly environment within the European regulatory framework, which other European countries could emulate.

Welcoming Culture and Integration
A welcoming culture is essential for integrating skilled migrants. Germany however, has a long certification process and lacks sufficient childcare and family support structures. Multinational companies are setting examples with their onboarding programs, which SME businesses could follow. 

Skills-based Hiring vs Certification
While global trends lean towards skills-based hiring, Germany’s job market remains highly certificate-driven. The panel suggested that while changing this culture will take time, skills-based hiring is gaining traction, especially with support from AI and specialized recruitment agencies.

Creating a European Narrative
The concept of a unified European narrative akin to the American Dream was discussed as an ideal rather than an imminent reality. While some leaders advocate for a renewed European spirit, the movement lacks widespread support. On a practical level, multinational businesses are contributing solutions to Europe’s workforce challenges, despite limited policy-level initiatives.

 We thank the BDA, Confederation of German Employers’s Association, Steffen Kampeter and his team for the successful seminar, support and collaboration.  

The seminar will kick off with a keynote address by Steffen Kampeter, CEO of the BDA (Die Arbeitgeber), who will provide valuable insights on the Labor Crisis in Europe from employers’ perspectives.

In the first half of the seminar, Prof Dr Stefan Liebing, CEO of Conjuncta and former Chairman of the German-African Business Association, will lead a workshop titled “Skilled Workforce Development in Africa”.  Following this, Henrik Schönsted, HR Director at GMH Group, will offer a practical perspective on the challenges the steel industry faces in recruiting workers both within Europe and globally. Next, Dr Tobias Meier, Co-Lead at the Department for Qualification, Professional Integration and Employment at BIBB, will discuss “Future occupations: Demand, Trends and Labour Supply Expectations.”  Dr Leonard Fox from the Fraunhofer Institut, who oversees Corporate Culture and Transformation, will then conduct a workshop on “Causes, Impacts, and Cooperation Strategies to Address the AI Skills Shortage”.

In the second half of the seminar Sophie Röpke, CEO and Founder at HR Connectum will present the “Self inflicted dilemma: women and the skilled labor shortage in Europe.” This will be followed by Nasim Ebert-Nabavi, Corporate Lawyer and Lecturer at the Administrative Academy Berlin, who will delve the complex legal challenges surrounding the skilled labor shortage. Key topics include immigration regulations, recognition of foreign qualifications, labor law frameworks, and the structural issues in the education system and European mobility. Lastly, Fabian Goslar, Founder of Genintelligence will emphasize the crucial role of better integrating older workers to address the skilled labor shortage.

The day will start at 9:00 AM and conclude at 06:00 PM with the Panel Discussion: “Closing the Workforce Gap: How to keep Europe Competitive, Innovative and Cosmopolitan?” featuring Steffen Kampeter, CEO at BDA (Die Arbeitgeber) und Tobias Zimmermann, Head of Insights and Creation at Stepstone. 

If you have any questions, please feel free to contact us. We anticipate receiving comprehensive applications at events@united-europe.eu. Please include a CV and concise cover letter.
The deadline for applications is September 30, 2024.

We look forward to welcoming you!

Our recent Advocacy Seminar “What’s happening with AI?” took place at Microsoft Berlin on Mai 13, 2024, where over 30 Young Leaders from across the European continent discussed the impact of AI on various aspects of politics, economy and society:

“Balancing Act: The Path to Responsible AI in Europe” by Martin Hullin, Director Digitalization and the Common Good at Bertelsmann Foundation.
Martin Hullin explained that while society is currently reacting to AI advancements by regulating, there is a need to focus more on societal aspects to harness AI for the common good. Greater knowledge and awareness among system designers, civil society, and programmers are essential. The ongoing regulatory arms race between regulation and innovation creates tension. To navigate this, building trust in AI technologies is crucial. Regulation alone is insufficient; capacity building is equally important for implementing protective measures.
In this context, Martin Hullin emphasized that the AI Act aims to ensure that AI respects citizen rights and public safety while fostering innovation and trust. It adopts a risk-based approach with stringent regulations for high-risk applications and bans certain uses, such as real-time biometric identification in public spaces.

“AI-powered disinformation as a threat to the integrity of elections” by Markus Oermann, Professor of Digital Ethics and Media Law at Technical University of Applied Sciences Würzburg-Schweinfurt (THWS).
Professor Oermann highlighted the threat AI-powered disinformation poses to election integrity, especially in 2024, a super election year with 33 executive and legislative elections worldwide. AI has already been used in various countries’ elections, with examples including deepfake videos and robocalls aimed at manipulating voter behaviour.

Professor Oermann emphasised that democratic elections rely on the free formation of opinions, which requires trustworthy information. Disinformation (e.g., deepfakes), malinformation (e.g., hate propaganda), and deceptive communication threaten this integrity. He highlighted industry initiatives like labelling and flagging on social media and the Munich Security Conference Tech Accord as well as political actions including the G7’s Hiroshima Process, the Council of Europe’s draft framework on AI and the EU’s Digital Services Act. Providers of information infrastructures play a crucial role in ensuring equal access to reliable information, a core value of democratic public discourse. Rather than focusing solely on market logic, they should prioritize effective, value-based R&D from the outset, Oermann concluded. He urged Stakeholders to establish and uphold an effective ethos for responsible AI R&D, ensuring it serves as a robust information infrastructure.

“Opportunities for the European economy in applying AI” by Harmen Zell, Public Policy Manager at Meta and Christoph Stephan Meister, Policy Experiences Lead at Meta.
The workshop showcased how Meta’s AI innovations and open research approach can significantly impact the European economy by democratizing access to advanced AI tools.

Meta, through its Facebook AI Research (FAIR) established in Paris, is at the forefront of advancing AI with a commitment to open research. The application of AI in Europe presents numerous opportunities across various sectors. Meta’s advancements in AI tools and platforms can drive innovation, enhance productivity, and foster economic growth across the continent. Recent innovations presented during the workshop included:

• LLAMA: The next generation of open source large language model, available for free for research and commercial use
• Seamless Expressive: An AI tool that translates recorded videos into other languages
• Segment Anything (SAM): An AI tool that precisely targets components in images, proving useful in fields like radio oncology and manufacturing.
• Smart Glasses with AI Capabilities: Featuring an integrated AI system that serves as an everyday AI companion.
  AI Studio: An open-source platform for developing and fine-tuning AI tools. By making AI tools accessible and easy to use, Meta is helping to level the playing field, enabling smaller businesses and research institutions to leverage cutting edge technology for their benefit.

“Opportunities in Sustainable AI” by René Delbé, Climate Pact Lead at Microsoft and Alperen Can, IT Lead at Mercedes Benz AG.

Alperen Can presented the Green Machine project and demonstrated how intelligent Algorithms and data driven approaches can significantly enhance manufacturing efficiency and sustainability. As environmental awareness grows, the industry seeks sustainable ways to save energy. The project focuses on optimizing existing production plants through intelligent data analysis rather than purchasing new components, which can waste resources. By collecting comprehensive information about production plants, self-learning algorithms can automate optimizations. “Industry accounts for nearly 45% of electrical power. Enhancing efficiency and sustainability is crucial for companies, particularly in the manufacturing industry, where machine tools consume significant energy.” Alperen emphasized.

At the workshop’s conclusion, René Delbé introduced Microsoft’s Co-Pilot AI Assistant. This innovative app distinguishes itself by facilitating easy verification of answers through clearly indicated sources and citations. René Delbé underscored the critical importance of verification when utilizing AI tools. Additionally, the Co-Pilot app offers the capability to generate royalty-free images, highlighting its versatility and utility.

“Digital Sovereignty: A robust Strategy for Europe” by Professor Key Pousttchi, founder of the wi-mobile Institute for Digital Transformation.
Professor Pousttchi’s talk highlighted three major issues surrounding AI:
1. Understanding: There is a widespread desire for AI, but few truly understand it.

2. Truth: AI cannot determine truth; it operates on probabilistic models. For instance, while ChatGPT can describe calculations, it doesn’t understand them.
3. Policy: Many policy decisions about AI are made by individuals lacking deep technical understanding, often lawyers rather than mathematicians or programmers.

Pousttchi stressed the need for policymakers to understand inductive statistics and the complex, multidimensional nature of AI models. Without thorough evaluation and real knowledge, public discourse on AI often resorts to shortcuts and superficial statements, lacking serious in-depth analysis.

AI is redistributing power among individuals, companies, industries and world powers. The leading entities in data and usage, Apple, Google, Meta, Amazon, and Microsoft as well as their Chinese counterparts – are set to dominate the AI landscape. The key to power lies in owning customer data, impacting everything from smartphones and cars to smart cities, homes, and future technological augmentations of the human body.

Pousttchi highlighted that Europe’s role has diminished from a player to a playing field. To regain influence and ensure European values are considered in shaping the future, Europe needs to make significant contributions. This requires substantial efforts, akin to the “airbus” task, to engage on an equal level in the global AI arena.

You can watch the full seminar on YouTube.

*We would like to thank Jennifer Pernau, Manager at Microsoft, and Felix Klein, Consultant at Vindelici Advisors for their contributions to the seminar. Jennifer Pernau was part of our Mentoring Proogramme 2023/24 and Felix Klein was part of our Mentoring Programme 2022/23. Jennifer and Felix are two active members of United Europe’s Young Leaders Advocacy Network.

DATE: Monday, 13th May
TIME: 16h00 – 17h30 CET
LOCATION: Berlin

Our panel of speakers include:
1. Wolfgang Dierker, General Manager at Microsoft
2. Semjon Rens, Public Policy Director at Meta
3. Deniz Özcan, General Manager at GMH Systems, GMH Gruppe
4. Marco-Alexander Breit Breit, Deputy Director General for AI at the Federal Ministry for Economic Affairs and Climate Action

The distinguished panel will explore the intricate relationship between AI, regulation, and geopolitics, with a particular focus on the implications of the EU AI Act on economic growth. From industry perspectives to governmental insights, this discussion promises to offer a comprehensive view of the current landscape and the road ahead.

Your presence and participation will greatly enrich this discussion.

Please RSVP by May 7th to confirm your attendance at events@united-europe.eu and secure your place at this event. Should you have any questions or require further information, please do not hesitate to contact us.

We look forward to welcoming you!

Our seminar will commence with a presentation by Markus Oermann, Professor of Digital Ethics and Media Law at Technical University of Applied Sciences Würzburg-Schweinfurt (THWS). Mr Oermann will shed light on AI powered disinformation as a threat to the integrity of elections.
To dive deeper into understanding opportunities based on AI, Harmen Zell, Public Policy Manager at Meta, will conduct an industry workshop titled “Opportunities for the European economy in applying AI”. A second perspective will be introduced by René Delbé, Climate Pact Lead at Microsoft, who will host a workshop on “Opportunities in Sustainable AI”. Subsequently, a policy workshop on “Digital Sovereignty: A robust Strategy for Europe” will be led by Professor Key Pousttchi, founder of the wi-mobile Institute for Digital Transformation, discussing strategies for Europe to maintain sovereignty in AI successfully.

The day will start at 9:00 AM and conclude at 5:30 PM with a Panel Discussion: “AI between regulation and geopolitical tensions – How the EU AI Act impacts economic growth” featuring Wolfgang Dierker, General Manager at Microsoft, Semjon Rens, Public Policy Director at Meta and Marco-Alexander Breit, Deputy Director General for Artificial Intelligence at the Federal Ministry for Economic Affairs and Climate Action.

📧 To apply please send your CV to events@united-europe.eu. We are looking forward to receiving your application!

Europe’s foreign policy towards Africa is failing for several reasons: It is often driven by a narrow focus on raw material, security and migration concerns, rather than taking a broader and more holistic approach. European policies are also perceived as paternalistic and lacking in genuine partnership with African countries, which undermines their effectiveness. Listening to local perspectives is essential because it allows for a more nuanced and accurate understanding of the African Continent.

Award-winning Journalist Mercy Abang, CEO of BigTech Fatu Ogwuche, Former Commissioner for Budget and Planning of Kaduna State Muhammad Sani Abdullahi and Senior Partner at SBM (Nigeria’s Leading Geopolitical Intelligence Platform) Cheta Nwanze will lead participants through the day.

The seminar takes place at the ESMT, Schloßplatz 1, 10178 Berlin, from 09h00 to 18h00 CET and promises engaging workshops and talks followed by a panel discussion with representatives from the German Foreign Office, African Journalists and representatives from the German business community to discuss: “Is Europe in Africa driven by its values or interests?”

If you would like to recommend an outstanding young professional please send us your  nomination. If You would like to participate please send your CV to advocate@united-europe.eu. Nominations and applications are due by May 31, 2023.

Europe’s economic transition is heavily reliant on imports of critical and rare raw materials needed for green energy, electronics, aerospace, automotive and defence. The lion’s share of the world’s raw material is covered by just over a dozen countries, with a heavy Chinese dominance. The battle for raw materials is central to rising geopolitical tensions around the world and thus Europe’s dependency is developing to become the next existential crisis for the industry in Europe.

These challenges must be addressed on a European level and must include a geopolitical strategy, as well as multiple perspectives. Therefore, we have invited the following experts to contribute their views:

Dr Josef Braml – Secretary-General at the Trilateral Commission
Dr Ferdinand Pavel – Director at EY
Dr Jennifer Pernau – Partner at Agora Strategy
Dr Tim Rühlig – Senior Research Fellow at DGAP

The panel discussion is followed by workshops, where participants will discuss several scenarios with their potential outcomes and develop a to-do list for Europe. The goal of the event is to exchange views from different professional perspectives and to derive approaches for solutions. The invited audience are the members of the participating organizations and students who are enrolled at the ESMT.

If you are interested in participating or if you know young talents feel free to apply or to forward this application call. Applications must include a brief cover letter indicating interest and a CV. All documents must be submitted electronically in PDF format in English.

Please send your application in one document by the 26th of January 2023 to advocate@united-europe.eu

We are looking forward to an exciting Advocacy Seminar in Berlin!

The seminar started with a keynote by Hildegard Bentele, Member of the European Parliament and a Member of the Development, Environment and Energy Committee:
Since the Ukraine war, dependencies have shifted. Europe needs Africa to diversify and transform its energy supplies: “Due to the geopolitical situation, the EU is repositioning towards Africa,” Bentele said. “There is lots of common ground with Africa and although Europe is Africa’s neighbour, China is faster and more anchored on the continent.” The new EU-Africa ‘Partnership of Equals’ promises more private sector engagement and large-scale investments: “We need to focus more on follow-up and tangible results in form of concrete projects on the ground. Rhetoric is not enough,” Bentele underlined. The EU wants more trade with Africa but new green policy instruments i.e. the Emission Trading System (ETS) and the Carbon Border Mechanism are putting pressure on African exporters. Whether the EU will help Africa to develop fossil fuels whilst phasing them out at home remains a sticking point in the partnership negotiations: “Africa should do it in a better and smarter way. If the rest of the world is going on this path of powering their development with fossil fuels, we are not going to have a livable planet in the near future. Let us do it the right way. Let us learn from past mistakes and use the abundance of green energy for Africa’s benefit. Africa has a chance to do it better.” Bentele sees the role of Europe in providing Africa with technology and know-how whilst setting the right frameworks for a green transition.

The countries of the so-called “Sahel”, Mali, Burkina Faso, Niger, Central African Republic, South Sudan, Sudan, Eritrea and Chad are forming a contingent crisis area spreading out further to the coastal regions. The Sahel is resource-rich and mostly landlocked. After the fall of Gadaffi, politically organized Islamist groups rapidly spread alongside trans-Sahelian organized crime. The geopolitical risk of a grand Islamist arch, long treated as an external terrorist threat in Europe, has been combatted militarily under French leadership and reinforced by European development aid in a top-down structure, the so-called “Sahel Alliance” based in Brussels. Despite nominally impressive military aid, stabilization missions and EU military training, Europe failed. Violence in the Sahel only accelerated and terrorist threats, as well as civilian collateral, increased.

Today the Sahel is territorially more disintegrated and the civilian governments lost control and are largely deposed and replaced by military rule. “The EU mantra has been supporting the return to democracy, to free and fair elections, wiping out corruption through good governance. The problem is that there is no postbox to whom these noble demands can be addressed. States in the Sahel are not only fragile or weak, they failed. The return to something that never was is simply senseless,” Professor Asche said. Whilst the French repeated the failures of Afghanistan in the Sahel, reconstruction of state and society started in villages bottom-up through talks on local levels. These negotiations on village levels were much more effective than the French coved military operations, without local partners and participation of national armies. Combining talks on the village level with training women to take leadership roles, and simply supporting locally identified projects, implies a paradigm shift in European Development Aid Cooperation and military doctrine, Professor Asche concluded.

Africa, our neighbour, is considered an energy source whilst still lacking universal energy access: roughly 24% of the African continent is electrified and only 40% of Africans have access to electricity.  The stabilization of power grids is one of Africa’s main concerns and although Africa is rich in natural resources and a continent with green energy resources in abundance, it depends on energy supply from abroad. Recent bilateral agreements between the EU and Africa provide Europe with resources in exchange for enhancing Africa’s own energy capacity, particularly in rural areas.

Large oil & gas cooperations operate for centuries on the African continent but for more private sector engagement, Africa and Europe need a better framework and better access to capital. The current energy cooperation is one-sided and not sustainable long-term. Developing fossil fuels has been outlawed since the Paris Agreement, however developing renewables is taking too long and there is simply not enough commitment, capital and know-how on the ground. The European engagement on the continent is neither united nor coordinated: Europe is not engaging as an entity and whilst we see encouraging Member State level engagements, a European approach could be more impactful and effective.

If Europe wants to develop projects and in particular hydrogen on a large scale, a united approach, better frameworks for the private sector and local capacity building are needed: “If we don’t think in that direction, hydrogen will simply be the next oil and nothing will change. Continental unity is a very important aspect in the equation to reach real African-European cooperation. We need to do more in terms of education and we need a more inclusive approach.” For Camara, Africa is not a short-term solution, it is a long-term necessity: “We need to diversify our raw material dependencies and eventually move parts of our energy-intensive industries into Africa where green power is available in abundance. We have to have that intrinsic motivation to strengthen the ties and to come closer to our African neighbour.”

The VDA operates through a partnership initiative with the African Association of Automotive Manufacturers (AAAM), supporting the partner associated with the establishment of framework conditions, infrastructure and private sector activation, knowledge transfer and innovation. The Federal Ministry for Economic Cooperation and Development (BMZ) supports this partnership within the framework of the “Special Initiatives (SI) Training and Employment”. The initiative creates suitable conditions for private investment in an organised African automotive industry for the economic development of the industrial sector, innovation and opening up of new markets in the African continent.

The initiative is a capacity-building partnership working towards the reduction of trade barriers, improvement of investment climate, marketing and image building and the design of PPD mechanisms with the vision to establish a pan-African Auto Pact. The auto pact will develop assembly hubs across Africa, and scale the industry through regional collaboration and shared value chains in order to support the collaboration of regions across Africa. “The support and engagement of the private sector is the main driver for the development of industry across Africa which is crucial for job and value chain creation,” Marius Ochel concluded. 

Heike Hoeffler from the GIZ (Gesellschaft für internationale Zusammenarbeit) talked about Africa’s agriculture between food security and modern value chains: 
When it comes to development aid it is important to identify spheres of influence and what can be done with existing structures and conditions on the ground to make a change. On climate change and population growth, there is very little to be done from an agro-economic perspective. In Africa, the agriculture growth rate is in sync with economic growth. Increasing Africa’s GDP depends on increasing productivity and agro-yields. Agriculture is the main employer on the continent and provides 65% of livelihoods in Africa, especially for women.

“In order to make Africa’s agriculture more productive within the given resource frame, we have to balance food security vs modern value chains. Tea crops in Kenya, for example, do not prevent food insecurities and are grown for high yield exports dependent on global market price: both are needed – global market access and production for the local market,” Hoeffler said. “The development approach is to invest in value, yields should not take the center stage only, also a sense of nutrition is important to value creation, alongside rules-based development, to make sure workers can earn a living wage from the crops as well as a more ecology-based approach, focusing on CO2 footprint and the environment.”  We already see the debate shifting from value chain to food system, taking nutritional status, quality vs. pure production yields more and more into account. “The private sector is the main driver for the transformation and needs to be supported financially,” Hoeffler remarked. Research, development, knowledge and innovation are of fundamental importance for securing food supplies:  how to use fertilisers efficiently, how to adapt cultivation to climate change and how to protect food from decay through suitable storage methods.

Hoeffler put this into perspective: “It is a dire situation and the war in Ukraine perpetuated existing problems into a storm – a very grim situation comprised of conflict, droughts, market trade distortions and economic shocks due to Covid19.  Also with a worrisome outlook on the supply of fertilizers; the Phosphorus boundary will hit our planet first and is irreversible, reserves will be out within 20 years. We will see a significant price increase for food in the coming years.”  The number of undernourished people worldwide has already been rising in 2020 – there are 768m people going hungry. 750,000 people are facing starvation of death in Ethiopia, Yemen, South Sudan, Somalia and Afghanistan. 276 million people are facing acute food insecurity in 81 countries, and this number could increase to 323 million people by the end of this year.

Matthias Wachter from the Federation of German Industries, BDI,  gave strategic examples of mining partnerships in Africa: Critical Raw Materials come mainly from Africa and China. The EU is currently hugely dependent on rare earth materials from China. This dependency is already bigger and more critical than the dependency on oil and gas. Since the War in Ukraine diversification of supply chains has taken strategic centre stage: Africa is a resource-rich continent and minerals are also produced there. Kobald from Congo counts for over 70% of the global supply for example and is needed for e-mobility. “The energy transformation is a key driver for raw materials and rare earth materials (IT, Windturbines, etc) and we will only need more of it in the future not less. New technologies will create more dependencies on rare earth. If we don’t diversify our dependency will only increase.” warned Wachter. Europe’s strategic question is how to cope with the increasing raw material demand in the future? Africa plays an important role here as Europe’s resource-rich neighbour. Europe has clearly been underrepresented on the African continent: “Only about 2% of our export goes to Africa and about 2% of our imports come from Africa,” concluded Wachter.  

Professor Asche (University of Mainz) on Africa’s Resource Curse: Half a dozen mineral resource-rich countries are located on the African continent alone and its geographic location close to Europe makes Africa a strategic partner to the EU. But the blessing of rich mineral endowments comes with the possibility of a “Resource Curse” (Auty, 1993) or the “Paradox of Plenty” (Karl 1997), which has political-economic, social, ecological and social dimensions, among them a subset of economic problems known as the “Dutch Disease” – a term coined in 1977 by the Economist to describe the decline of manufacturing and agricultural exports in the Netherlands after the discovery of large gas reserves. Professor Asche remarked that not one single African country has put its resources to good use: “It is not that they have achieved nothing but rather what would have been possible in regards to education health and infrastructure has largely been squandered for less useful purposes. There is one exception: Botswana has a relatively good education and health system and some of the resource-poor countries do relatively well.”

Mineral resource-rich countries suffer from the so-called “Enclave Syndrome” with very little spill-over to the local population: profits usually go abroad and the mineral sector actively depresses negative impact on the rest of the economy. The exchange rate appreciation hampers productive sectors including the export and import of essential goods. All capital and talent are drawn into the resource sector and the negative impact on the environment aggravates the problem for the rest of the economy. Also, infrastructure is monopolised and built to serve the resource sector only. Complicated policies are required to counter the challenge. So-called North-South partnerships and cooperation for knowledge and technology transfer could be part of the solution. 

Professor Andreas Freytag (University of Jena, l.) examined Europe’s conventional Development Aid Strategies: Unfortunately, Development Aid can have counter effects on the ground. If things are going to be provided from the outside there is no urgency to develop structures, new policies or local economies. “It actually promotes corruption and creates dependencies”, said Professor Freytag. “Development Aid sometimes hinders development, it creates the so-called Dutch-Disease phenomenon, promotes rent-seeking to the benefit of elites.” According to the LSE scholar Lord Bauer, public development aid is mainly counter-productive, except for centralized projects and emergency aid. The economic assessment of Development Aid concludes that it is most helpful in countries with functioning institutions and good governance. Despite these results, the EU is further expanding Development Aid initiatives: Germany for example has started Compact for Africa and Marshall Plan with Africa. “Eleven German Ministries have Africa Strategies none of which is coordinated. Remittances from the diaspora constitute more support to Africa than Development Aid – much more effective, more targeted and better used-bottom up.”
Freytag observes the so-called White Mans Burden (Kipling 1899): the agenda for aid programs is developed in the minds of the donors without taking the actual needs and priorities of recipient countries as the necessary political starter. Freytag suggests better use of aid money in sync with export or investment promotion measures (on which Manuel Fröling from Siemens Energy dwelled) and the provision of tangible infrastructure: “Europe is good at identifying gaps but really lacks tools and local understanding to help to close it,” Freytag concluded.

Professor Andreas Freytag (University of Jena) offered insights on China’s Engagement in Africa:
China cannot only be judged in a negative light. China’s engagement in Africa is mainly based on trade, i.e. construction material, mining and production. In recent years import-export relations rose steeply. China invests heavily in Africa’s infrastructure and manufacturing as well. Aid is being provided for huge infrastructure projects and 1.2 million Chinese permanently immigrated to Africa so far. China is firmly anchored in the African continent which underlines its long-term commitment. The Chinese government delegated up to 300 civil servants to each African country –  in comparison Germany is sending only 7 delegates to African countries. According to the Economist, Chinese loans peaked in 2016 and are now slightly decreasing. China doesn’t operate under OECD guidelines and lending conditions are rather opaque. “China is not only providing money but also basic infrastructure which creates desperately needed jobs in the African continent however under questionable conditions. Nevertheless, China offers Africa a different option to Europe,” Professor Freytag concluded: “There are lots of strings attached for example freedom of speech and humanitarian standards are being severely threatened. No strings attached is a myth and we can see China’s also meddling on the continent for example through strategic military investments along Africa’s coastline.”

Professor Helmut Asche, University of Mainz talked about Russia’s Engagement in Africa: Russia’s engagement in Africa is severely underresearched in regards to scope, dimension, cause and effect, which is the main difference from China’s engagement in Africa – currently filling libraries. The new Russia Africa policy started back in 2017 and constituted a recent phenomenon made up of four pillars of intervention: Mercenaries, Military, Mining and Propaganda with systematic and strategic campaigning unchartered by any other media, Russia is pushing anti-western narratives and exploits the narrative of colonisation to undermine Europe in the region.  Russian engagement focuses on key resource-rich countries such as Libya, Sudan, CAR, Mali, Cameroon and Mozambique. Russia’s engagement is centred on providing private security and military aid in fragile and failed states engaging in proxy and civil wars with organised groups like Wagner, designed to contain risks for Russia’s interests in extractives and its primary objective of geopolitical influence. Russia’s export is based on mineral resources and military power and although arguably a destructive approach, Russia’s policy finds acceptance in both Africa’s elite and parts of the population. Why is Russia’s new African policy so strikingly effective? The likely reasons are Africa’s genuine cause for disenchantment with former colonial powers and compelling economic interests in particular currently grain imports. Not to underestimate is also Russia’s effective propaganda through media. “Europe needs a communication strategy of its own on the African continent to counter Russia’s new Africa policy,” Professor Asche concluded. 

When doing business in Africa, the Africa Business Guide, the German-African Business Association and the German Chambers of Commerce abroad offer support to German companies. Alongside, the Federal Government provides different guarantee instruments to support German companies in Africa to secure access to challenging markets. Manuel Froeling touched upon the fundamentals of the export credit guarantees (also known as Hermes Cover) and the investment guarantees, both being used for large-scale projects in Africa: The Hermes guarantees are managed by Euler Hermes as the Export Credit Agency (ECA). The exporter can insure himself against default on repayment claims due to economic and political reasons. Banks can also use the Hermes Cover for financing these exports. Often, the funding of large transactions in African countries is only possible through the provision of the Hermes Cover. The Interministerial Committee (IMC) defines conditions for the granting of export guarantees for each country in Africa. Although the export credit guarantees are available to all German exporters doing business in Africa, only 1.5% of German exports were covered last year under this scheme. “It would be good to see even better conditions for African countries although a lot has been done by the German Government, especially in the past years,” said Manuel Fröling.

ECA support is highly regulated. The so-called “OECD consensus” has set uniform minimum standards for export credit and the consensus has been transposed into EU law. It covers all state-supported export credits which have a repayment term of two years or more. However, Non-Participants in the arrangement have become important providers of ECA-covered export finance solutions. “China, India and Brazil should be part of the OECD consensus otherwise we won’t see a level playing field for Europe in the near future,” Fröling remarked. There are also other important international regulations such as the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits or the Recommendation on Sustainable Lending Practices and Officially Supported Exports Credits. Investment guarantees are another important instrument, offered by the German Government. This set of instruments can be used by a company to hedge eligible German direct investments in African countries against possible political risks. Commercial risks are not covered. Banks can also use the instruments of investment guarantees when financing the investment of a project. For example, a bank can have an investment-like loan secured with the help of investment guarantees. Also, for this instrument there is an IMC-similar composition as for the Hermes guarantees, only here is PwC the agent and responsible for the management. “Getting an investment guarantee for example for Mali for large investments is very challenging because of the limited cover available and this is exactly the dilemma because they need it most. And to stabilize those regions development is urgently needed,” Fröling concluded. There is a willingness to improve and drive investments into Africa and lots of barriers have already been lowered through initiatives such as Compact for Africa. However, there is still room for improvement.

We would like to thank our co-organizers Professors Andreas Freytag and Helmut Asche, presenters, participants from all across Europe and especially our members who have made this event possible.

United Europe is a non-profit association financed exclusively through membership fees and donations. Please consider making a donation so we can continue to drive forward our agenda of making Europe more united.

We are starting with a panel discussion  “Emerging from the Energy Price Crisis: How to build a sustainable backbone for Europe’s industry?” taking place on 31st May from 12h00 – 13h15 (CET). This will be followed by a flying buffet and networking until 14h30 (CET) at the Cercle Royal Gaulois, Rue de la Loi 5, 1000 Brussels.

The panel discussion with Simone Mori, Head of Europe at Enel, Johanna Schiele, Policy Officer Innovation Fund at the European Commission, Philip Lowe, Partner at Oxera, Torjbjorg Klara Fossum, VP at Equinor and Marc-Oliver Arnold, Plant Director at Georgsmarienhütte GmbH, will be moderated by Hanns Koenig, Head of Commissioned Projects at Aurora Energy Research.

The event takes place in compliance with all applicable health and sanitary regulations. The number of participants is limited and therefore we kindly ask you to register before the 20th of May at events@united-europe.eu

We will use Zoom to record the event. Please register here if you wish to attend this meeting online. After registering, you will receive a confirmation email containing instructions for joining the event.

We are looking forward to seeing You in Brussels or Online.

Please find the recording of the webinar on our YouTube channel.

Summary:
The EU taxonomy is a classification aimed at helping financial markets define what is green or what is not
green, so as to avoid greenwashing and accelerate green investments. The EC proposed to include
nuclear and natural gas into the taxonomy, subject to them fulfilling certain criteria. Although the proposal
was highly controversial, the EC decided to move forward, hoping the two sectors can help the bloc meet
its ambitious roadmap to climate neutrality. Coincidentally, Russia invaded Ukraine on the same day of the
webinar, which in the meantime has pushed up natural gas prices significantly and resulted in a push in
Europe to reduce reliance on Russian gas. This may result in a strong move towards a financially viable
option of “green” hydrogen, as well as other alternatives to natural gas, over the long term, reducing at
least the impact of including natural gas in the taxonomy.

Key Conclusions:
Michael Müller (RWE) suggested that whether a company’s activities are “green” should be judged by
how it spends its CAPEX, rather than its legacy activities, because CAPEX clearly demonstrates how
much investment is put into new technologies. The automotive, chemical, and steel industries face huge
investment needs. Looking at the status quo alone will not help transform energy markets.

Although the Green Party has been traditionally against gas, Ingrid Nestle (Bündnis90/The Greens) sees
the need in providing energy security through gas-fired power plants. She took a strong stand against
nuclear, and pointed to the still unresolved issue of nuclear waste management and to delays in the buildup of new nuclear power plants in Western Europe: “They are a decade late and it doesn’t take a decade to build them. They are one decade behind schedule.” Nuclear Power is much more expensive than renewable power and Europe should not spend more money, time, and political energy on nuclear, but instead focus on green infrastructure, Ingrid Nestle concluded.

Valerie Faudon (SFEN) from the French Nuclear Association, countered that nuclear is necessary for
energy security and that nuclear forms an important part of the energy transformation process: It is a
question of Europe’s competitiveness, Valerie said. Europe needs to take an international perspective:
reducing emissions is a global issue and nuclear will be part of other taxonomies, for example in the US or
Canada.

Laurie Fitch (PJT) highlighted the urgency of energy security. The power sector is not an industry where
supply chain failures can be blamed on blackouts. It is essential, she said: “Given the sheer sums of
money and time horizons involved in investing in green infrastructure, it has to be very clearly classified.
Therefore the taxonomy is highly important and really matters to capital flows.” Consequently, the
taxonomy underpins a much wider definition of what might be considered sustainable. There’s a five
hundred billion per annum fast-growing green bond market, and capital flows will definitely pay attention to the taxonomy.

Full Interview (edited):

HK: RWE is investing in power generation assets across Europe. How does the taxonomy affect large
power generators?

Michael Müller, RWE
The taxonomy provides a classification for activities that are sustainable and supports investors or the
capital market to make decisions on where to invest. It provides a classification and in principle, this is a good approach: But in practice, it is an administrative burden in particular to large power generators. The
taxonomy criteria are based on sustainable and non-sustainable activity, which is a totally different
perspective to be documented and it takes huge effort to provide the reporting.

HK: The German Green Party has been traditionally quite critical of including gas and nuclear in
the taxonomy. Now the Green Party is in government in Germany, and supported a compromise
that included natural gas and nuclear as “green” – why?

Ingrid Nestle, Bündnis90/TheGreens: The taxonomy is a good approach but the inclusion of both
nuclear and gas makes it less credible. Nuclear is definitely treated too well and it is a huge mistake to
include it. A technology that delivers waste to be guarded for ten thousand years cannot be sustainable.
Natural gas is another story: here, one has to differentiate between fossil gas and gas-fired power plants,
which can run with different types of gas including hydrogen in the future. These power plants are not only
acceptable, but they are also necessary for the 100 percent renewable future.

HK: Is nuclear treated fairly in the taxonomy or are the restrictions in place too strong?
Valerie Faudon, SFEN, Nuclear is one of the lowest emission sources in France. Waste management is heavily regulated and controlled in Europe. There is for example a deep geological storage solution to store nuclear waste where it is not in contact with the biosphere. In the taxonomy, nuclear is classified in the “transition” category. Hence, technical conditions have to be revised every four years. This is difficult because nuclear plants are set to operate for 60 years. Even with renewables, Europe relies on nuclear power due to its ability to be stored and scaled. The current 2050 scenario of the European Commission includes that nuclear will produce 15% of electricity in Europe in 2050.

HK: Does the taxonomy matter in shifting capital flows, or are we attributing too much impact to
the discussion over the past month? Has that been overblown?
Laurie Fitch, PJT Partners: Sustainability really matters when it comes to capital flows. The taxonomy
underpins a much wider definition of what might be considered sustainable. If you look at the capital flows, there’s a five hundred billion per annum fast-growing green bond market, and capital flows will ultimately pay attention to the taxonomy.

HK: The taxonomy means micromanagement and administrative burden for energy generators.
Would it not be more sensible to get rid of it altogether and let market forces and ETS run their
course? We can get rid of the taxonomy or the micromanagement altogether. Would that not have
been a more sensible approach?

MM, RWE: The taxonomy could be more pragmatic but introducing classification is clearly helpful. To
make investments green, there needs to be some kind of green classification. For industry, it is very
important that the taxonomy looks at two different criteria: firstly, how much of your revenues are
sustainable and how much are not sustainable, and secondly CAPEX, the sustainability of investments.
That is a very important difference. RWE has a heavy legacy coal portfolio but also a clear commitment to
transform that portfolio into a renewables portfolio. This is the transition that needs financing. We are
strongly pushing for the taxonomy to look at CAPEX because it is clearly demonstrating how much
investment is put into new technologies and how much speed you really put into transition. The
automotive, chemical, and steel industries have huge costs ahead of them and that needs funding.
Looking at the status quo doesn’t help the energy transformation.

Ingrid Nestle: The current proposal is in the hand of the parliament and this is what we have to work with.
In regards to nuclear, I heartily disagree that we know how to deal with waste. They are very strict
regulations because it’s so extremely difficult to deal with. We still don’t have a solution, but also nuclear
will simply be too late and too expensive. In my opinion, it’s kind of a hoax. All three new nuclear power
plants that are being built in Western Europe are a decade late. It doesn’t take a decade to build them.
They are one decade behind schedule. And there’s so much more expensive than renewables that are just
tearing away money, time, and political energy.

We now need to start talking about green infrastructure. How do we make sure that existing gas networks
or converted gas networks are available for hydrogen? We have to get electrolysis up and running so that
we get to a hydrogen economy. We are talking about 15 years. That sounds a lot. But I give you an
example: the biggest electrolyzer that is currently operational has 10 megawatts. The target is 10
gigawatts by the end of 2030. So that’s a huge step to get there. That’s why I asked for pragmatism. I think
we now need to get it all running, get it going because otherwise, we won’t need it at all.

HK: Is this black and white distinction in the taxonomy helpful and would we not have been better
advised of having three statuses, of “not clean, but helping us to get cleaner”?
Laurie Fitch, PJT Partners: The power sector is not an industry where supply chain failures can be
blamed. It has to work! It is essential. Given the sheer, sums of money and time horizons involved in
investing in green infrastructure, it has to be very clearly classified.

Valerie Faudon, SFEN: I’d like to add an international perspective: The European taxonomy is not going
to be the only taxonomy. And there will be other taxonomies for example in Canada or the US taxonomy.
In the American taxonomy, nuclear will be included. American capital will be investing in Europe. There is
an opportunity for new nuclear reactors in Poland, and the Americans have promised to invest here. It’s a
question of competitiveness. Europe must be competitive in its own continent. It is important that we take
an international view at some point in time: We have to harmonize taxonomies worldwide. If we don’t align,
it is going to create disruptions in the competitiveness of European industries.

HK: How are you seeing the global landscape for taxonomies shaping up?

Michael Müller, RWE: There are tons of rating agencies out there with different ratings and different
perspectives. So from our point of view, it indeed would be helpful if there is some alignment going
forward. We need a global standard on sustainability reporting, as we have on financial reporting. That will
provide a single framework. If we have one standard in the EU, it is clearly helpful as an intermediate step.
In the medium term, we need to have international standards to make it comparable. But again, that’s the
pragmatism I’m talking about. There must be a clear ambition to move towards an international standard.
And if you look at what is currently happening, it is moving in this direction.

Ingrid Nestle: The European Commission’s energy strategy focuses predominantly on green hydrogen
when it comes to energy transformation. It is clear that there won’t be enough renewable resources in
Europe to produce the hydrogen we need to keep our lights on. We have to be careful not to go from one
dependency to the next i.e. sourcing green hydrogen from Africa or other faraway countries. In Africa, you
have several million people without electricity. We can’t ask these countries to provide us with low carbon
hydrogen before they can provide their own people with the basic electricity supply.

We would like to thank our Advocate Milena Oschmann, Governmental Affairs for Deutsche Bahn, for her contribution to this event.

If time permits, we will have a Q&A session at the end, where questions from the audience will be taken.

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