We are honored to announce that Prof. Dr. Jan Balkenende (former Prime Minister of the Kingdom of the Netherlands) will deliver a keynote speech addressing the pressing challenges Europe faces today – including geopolitical tensions, economic competitiveness, and evolving security dynamics. To remain a relevant global actor, Europe must safeguard its unity, strengthen its strategic autonomy, and uphold its democratic values.

Bio: Prof. Dr. Jan Peter Balkenende, former Prime Minister of the Netherlands, has served as Minister of State since 2022. From 2011 to 2016, he was a partner at Ernst & Young (EY), specializing in corporate responsibility, international affairs, and the intersection of the public and private sectors. Currently, he holds several prominent positions: External Senior Advisor to EY, Associate Partner at Hague Corporate Affairs (soon to be FGS Global from 2025), Chairman of the Dutch Sustainable Growth Coalition, Chairman of the Noaber Foundation, Professor Emeritus of Governance, Institutions, and Internationalisation at Erasmus University Rotterdam, and a member of the World Leadership Alliance – Club de Madrid, an organization of former heads of government from democratic countries.

Invitations to the Dinner Debate are extended personally to members of United Europe.

After the welcome speeches by Gerald Braunberger (Publisher of Frankfurter Allgemeine Zeitung) and Jörg Rocholl (President of ESMT), who openend with Günther H. Oettinger (President of United Europe, e.V.) the two-day conference, business leaders and politicians discussed current European topics. Among the speakers were Karan Bhatia, Global Head of Government Affairs & Public Policy, Google, Andrea Casaluci, CEO, Pirelli, Dr  Markus Krebber, CEO, RWE AG, Prof Reinhold R. Geilsdörfer, Managing Director, Dieter Schwarz Foundation gGmbH, Marzena Czarnecka, Minister of Industry, Republic of Poland, Jens Spahn, Leader of the CDU/CSU Parliamentary Group, and Andreas Mundt, President, Federal Cartel Office. Two representatives from United Europe’s corporate members were also present: Hugh Elliott, Executive Chairman, Iberdrola Energía Internacional, and Dr. Laura Hirvi, Public Policy Manager DACH, Meta.

You can view the full recap of the EEC on the EEC website here.

Europe is an economic giant, a political dwarf, and a military worm,

as Belgian Prime Minister Marc Eyskens stated back in 1991. Gerald Braunberger, publisher of the Frankfurter Allgemeine Zeitung (FAZ), referenced this assessment in his opening speech. He warned: Europe is not only at risk of falling behind the USA economically, but it is particularly lacking a comprehensive Grand Strategy that defines and aligns economic, political, and military goals. The European Union’s deficits compared to the United States are glaring – both in terms of per capita income and economic performance. However, the gap also shows on another, highly modern front: space. Of approximately 10,000 operational satellites worldwide, around 7,600 belong to Starlink, Elon Musk’s satellite network. The company has already received approval for an additional 20,000 satellites. In contrast, the European Space Agency is struggling with its Iris 2 project, which aims to launch just 300 satellites into orbit – a symbolic number compared to the ambitions of other global players.

Europe is thus facing a profound transformation – and it is a difficult one. Braunberger sums it up: “If we are honest, we only change under pressure. The election results of recent years should have already generated enough pressure. But today we are additionally under the pressure of three elderly men who are not based in Europe: Donald Trump, Vladimir Putin, and Xi Jinping. Whether it will be enough for the state to simply spend money without providing strategic answers remains questionable.”

One of the founding fathers of the EU and European visionary Jean Monnet once predicted that Europe would shape itself in times of crisis, and the sum of the solutions would define the Europe of the future. A very accurate observation – yet quick responses to unforeseen crises often remain mere improvisation. And improvisation is the opposite of strategy.

What Europe now needs is an open, public dialogue about strategic issues – a call directed equally at politics, the media, and civil society.

Gerald Braunberger, Editor of Frankfurter Allgemeine Zeitung

The Opportunities Trump offers to Europeans

were discussed by Günther H. Oettinger (President of United Europe e.V.) in his opening speech, among other topics. Between an irrational, dominant president in Washington D.C. and a rational, super-dominant dictator in Beijing, Europe now has the chance to regain trust. Trump is losing trust – and will not get it back. His trade war, his economic war, and the daily changing tariffs are unsettling investors, frightening market participants, and harming the U.S. more than any other region in the world. The embrace and simultaneous blackmail by China is also troubling many in the Arab world, Africa, and other regions. Now could be Europe’s time: as a safe haven for capital, investments, and as a reliable partner in international law – if the right conditions are created, we are able to act, and we make use of our leeway to address the big issues.

Mercosur? Even in Berlin, the trade agreement is viewed critically, and it is rejected in France, Austria, and Poland. Is an agreement possible without Europe patronizing or dominating Latin America? If not, we are missing a great opportunity. Other trade agreements – with the Emirates, India, Australia – are possible. Doors will open if they are defined based on clear legal frameworks. Trade must become a priority for the European Union now.

Warning of the “Liz-Truss-Effect”
I believe what happened with Liz Truss in the UK could also happen in Washington. The U.S. now spends more on the interest of its debt – without repayment – than on defense or healthcare. In Germany too, we are living beyond our economic means. Care, healthcare, pensions – a subsidy hole like no other. The great danger is that large subsidy programs delay urgently needed reforms. If Germany does not stay serious on budgetary issues, other countries like Estonia, Lithuania, Latvia, Ireland, the Netherlands, and Austria will also relax their fiscal discipline. The pressure to accumulate debt is rising – and then the Eurozone will be in life-threatening danger. The Liz-Truss Effect.

Big in Big Things – Focus on the Essentials
Europe should focus on the big tasks: Big in Big Things. Member states, regions, municipalities, businesses, and the labor world should have more freedom when it comes to smaller issues. We have an AI Act – but no AI. We have a Supply Chain Act – but no rare earths. Europe is over-regulated. Six years ago, it was promised: “One in, one out.” The result: “Four in, one out.” CSRD, CSDDD, Taxonomy, GDPR – less would be more. I hope Europe’s chance to become a trusted harbor leads to setting priorities: Innovation, infrastructure, research, external security, defense standardization, cybersecurity, Europol. And on smaller tasks: restraint. The people, the developing regions, the municipalities – they all need breathing space. Less would be much more.

Defense: Recognizing the Seriousness of the Situation
A U.S. ambassador recently told me: “You cannot expect forever that 340 million Americans will protect 550 million Europeans from 140 million Russians.” The numbers speak for themselves: Germany’s GDP alone is about 4,500 billion euros – significantly more than Russia’s, which stands at about 2,900 billion. The EU as a whole: 17,000 billion. If we really want to be defensible – we could be. My concern: With debt, you can buy weapons – but you lack people to operate them. Keyword: compulsory military service. How can the Bundeswehr become attractive to the younger generation? With entry and advancement opportunities, exciting fields of work, and real career prospects?

The Turning Point Needs to Move Beyond the Barracks – onto the marketplace, into daily life, to the local pub, into the workforce. We have not yet recognized the seriousness of the situation. A conversation with Estonians, Latvians, Lithuanians, Finns, or Poles could help.

You can view the full opening speeches here.

Sustainability and the Green Economy

Panel Discussion: The Future of Energy and Resource Supply in the EU – What needs to change?

Hugh Elliott, Executive Chairman, Iberdrola Energía Internacional
Dr Markus Krebber, CEO, RWE AG
Dr Yun Luo, Co-Founder and CEO, ROSI SAS
Benjamin Merle, CPO, Enpal GmbH
Moderator: Dr Christian Geinitz

Christian Geinitz: Ms Luo, you play an important role in the solar industry. Solar technology is considered green and sustainable, but on the other hand, this technology requires many resources and raw materials, and disposal is not exactly simple either. How do you contribute to a sustainable energy transition in solar power?
Dr Yun Luo: In fact, at Rosy, we are dealing with exactly this issue (recycling silicon). Silicon is the key material in solar cells. We have developed our own technologies to recycle and reprocess these high-purity raw materials.

Christian Geinitz: Mr Merle, is this offer that Rosy provides of interest to Enpal, one of the large solar providers? Can material that has been recycled be used in solar systems already?
Benjamin Merle: In the short term, I see few offers that are economically attractive, partly because the price of new modules is currently extremely low. However, if we want to become independent in the long run, the question is how we can keep raw materials within the country. In this regard, recycling plants are the “mines of the future.”

Christian Geinitz: Shouldn’t the disposal costs be factored into the prices of today’s cheap solar panels?
Benjamin Merle: That’s correct. There are many costs that still need to be internalized. Part of the costs are already being covered by developers, as they have obligations to decommission and recycle the systems. There are already relevant regulations in place.

Christian Geinitz: Mr. Elliott, your company is driving the distribution of renewable energy systems. As a former ambassador, you also have a political perspective on this topic, which is certainly important. What is your company contributing to the energy transition?

Hugh Elliott: When we talk about sustainability, we need to return to the basic principles and understand what sustainability actually means. In our industry, it’s primarily about electrification. Iberdrola took the step into renewable energy about 20 years ago and has transformed from a traditional energy supplier into a leading provider of green energy. Today, we are the largest energy provider in Europe by market capitalization and manage around 140 billion euros in assets. We generate and distribute renewable energy in eight to nine European countries and play an active role in the energy transition – with the goal of doing even more.

In Germany, we operate the largest offshore wind farm in the Baltic Sea, which has a generation capacity of nearly 800 GW. But we’re far from finished: we’re highly interested in expanding our activities further. Our vision is to create reliable energy security with renewable energy from Europe, while also making a significant contribution to climate protection. We are not just providing a sustainable solution, but also real competitiveness. We will no longer be dependent on the import of gas or fossil fuels – we generate the energy we need when the wind blows or the sun shines. These renewable resources belong to us.

Christian Geinitz: Dr Krebber, you are the largest electricity producer in Germany, and are undergoing a transformation similar to Iberdrola’s – the shift from fossil fuels to renewable energy. However, in Germany, there is still a significant share of fossil fuels, and the expansion of fossil fuel-based backup power plants remains a topic. With the coal exit law by 2030 and the exit from nuclear power, Germany is facing major challenges. Do you believe we can successfully manage the coal and nuclear phase-out?

Dr Markus Krebber: The goal is to ensure a secure energy supply that is decarbonized as quickly as possible. Whether we’re talking about 2030 or 2033, that’s not the key question. What is much more important is that we reduce the utilization of coal power plants as quickly as possible. I think we have already made good progress in Europe. For the first time, we have seen a monitoring report that shows that Europe’s climate protection goals for 2030 are nearly reached – a real achievement. This has been mainly achieved through electrification with renewable energy.

But we also need to acknowledge that issues like affordability, energy security, and resilience have now become much more important – and not just since the invasion of Ukraine. Europe imports energy, and due to geopolitical tensions, we have become much more sensitive. Then the question arises about industrial competitiveness: how can it be maintained? This, in turn, depends on energy security and affordability – a difficult triangle that we need to balance.

The expansion of renewable energy must continue, and we need far more storage technologies. The battery boom is coming – in the UK, it is already quite advanced, and now it’s really taking off in Germany too. And we need low-carbon backup capacity. Gas power plants are advantageous here because, unlike coal power plants, they can potentially be decarbonized.

Christian Geinitz: Is CCS (Carbon Capture and Storage) for coal in sight?

Dr Markus Krebber: I don’t think anyone is considering installing CCS in coal or gas power plants. Why? The utilization of these plants will continue to decrease. Eventually, the utilization will be so low that emissions won’t play a big role anymore. In the end, these power plants will just be backups when there isn’t enough wind or sunshine.

Christian Geinitz: Regarding energy security: In Spain and Portugal, the lights went out. What caused this? Are renewables to blame, as some say?

Hugh Elliott: The incident in Spain was not caused by renewable energy. Technically, it is entirely possible to run a power grid entirely on renewable energy, but for that to work, the grid must be designed accordingly. At the national level, this is a very complex task. In our countries, there are organizations responsible for the operation of the grids and ensuring that the electricity supply is maintained.

What we haven’t discussed enough yet is that the grids are increasingly becoming the bottleneck for energy supply. In many countries, we already have a high share of renewable energy, but this also requires significant investments in grid infrastructure. These investments are often less in the spotlight than the generation of renewable energy, which sounds green and sustainable. Grids, on the other hand, are seen by many as just cables and wires that no one really wants right next to them. But without grids, we cannot supply electricity with clean and affordable energy.

That’s why it’s crucial that we invest more in grid infrastructure and expand interconnectivity between countries. Europe is heading in the right direction, the political framework is in place, but we need much more investment in the grids and their interconnection to reduce costs and secure energy supply in the long term.

You can watch the full panel discussion here.

Solutions for Europe: Technology and Innovation 

A European response to the challenges of technology and innovation must be confident, strategic, and long-term. It should not be content with reactive measures, but should aim to build its own technological ecosystems – economically viable, ethically grounded, and geopolitically sovereign. What such solutions might look like has been outlined by Dr Laura Hirvi, Public Policy Manager DACH at Meta (you can see Dr. Hirvi’s contribution here), Prof Reinhold R. Geilsdörfer, Managing Director of Dieter Schwarz Stiftung gGmbH, Roman Hölzl, Co-Founder & CEO of RobCo GmbH, and Daniel Krauss, Co-Founder & CIO of Flix SE.

Prof Reinhold R. Geilsdörfer, Managing Director of Dieter Schwarz Stiftung gGmbH
emphasized that our traditional industries are increasingly under pressure: the automotive industry and mechanical engineering are facing new competition, while the metal and chemical industries are suffering from high energy prices. It’s clear: we are in the midst of the fourth industrial revolution – a profound change that will affect nearly all areas of life.

The key question is: How can we break out of the current stagnation? And most importantly – where are our opportunities in Europe and Germany?

Fields with Great Potential for the Future:

• Robotics

• Defense technology

• Quantum computing

• Energy storage

• Biotechnology and pharmaceuticals

• New mobility concepts

• Semiconductor technology

All these fields are based on key technologies such as artificial intelligence, data processing, and cloud infrastructure – technologies that have long become the foundation of our modern standard of living.

But here, Europeans face a decisive question: Do we want to permanently place central digital infrastructures – such as Microsoft, Amazon, or Google clouds – in the hands of non-European countries? This question is even more relevant since these countries often have different views on data protection and informational self-determination.

We need to be aware of where our data is stored – and who ultimately has access to it. We are still, in many ways, a data colony, handing over our information almost for free to large US corporations. Digital sovereignty is, therefore, not an abstract goal but the key to real independence and sustainable development in Europe.

Europe, with its 450 million people, has enormous potential – far more than the 170 million in the US. It is time to tap into this potential. De-risking is no longer just an issue in dealing with China, but also affects our relationships with the United States. This does not mean we should abandon trade or cooperation – on the contrary. But we need to make them more equal.

Only if we regain control over our digital key technologies can we shape Europe’s future in a self-determined and successful way.

You can watch the full speech here.

Daniel Krauss, Co-Founder & CIO, Flix SE

explained that the vision of Flix SE was clear from the very beginning: We want to make mobility in Europe affordable, sustainable, and accessible. The decisive impulse came from the legal liberalization of the long-distance bus market – a political step that not only sparked movement in Germany but in 43 countries, even enabling expansion into the US, such as through the acquisition of Greyhound.

What sets Flix apart from others is our platform model: we combine the entrepreneurial energy of medium-sized bus companies with digital technology, smart planning, and efficient distribution. Our success was also made possible by the rapid implementation of European law into German law – an example of entrepreneurial opportunities through smart policy.

We bet on entrepreneurial courage: instead of operating everything ourselves, we built a network with regional bus companies that went beyond previous growth limits. A nationwide system emerged that was based on cooperation rather than displacement.

The long-distance travel market is growing globally – and the demand for affordable, digital, and climate-friendly mobility solutions is increasing. More and more people are consciously giving up their cars and booking online. This lowers costs and improves planning. Those who are also price-attractive will be better found in digital search engines.

Deregulation can create growth. We developed an existing ecosystem – not destroyed it. The often-used “disruption” wasn’t destruction in our case, but a creative combination of existing strengths. This led to the largest network for ground mobility – with affordable prices, smart connections, and strong growth potential.

A key success factor is Simplicity – the principle of simplification. It’s about reducing complexity, eliminating unnecessary elements, and focusing on what’s essential.

Our vision remains ambitious: By 2040, we want to be CO₂-neutral in Europe. This is realistic – provided the political framework supports it. In other markets, such as India, we already operate the largest e-bus fleet – where the conditions are much more advanced.

You can watch the full speech here.

The economic Policy Debate: The role of the German Government in Europe’s economic Success – a controversial Assessment

The German economy is struggling, Europe is anxiously watching its industrial competitiveness – and the federal government is under pressure to kick-start growth again. In a controversial debate moderated by Heike Göbel, leading figures from politics and business discussed Germany’s role in European economic policy.

Participants included Jens Spahn, Parliamentary Group Chairman, CDU/CSU parliamentary group, Britta Haßelmann, Member of Parliament, Chairwoman, Bündnis 90/Die Grünen parliamentary group, Armand Zorn (SPD), Christian Dürr, Member of Parliament, Deputy Chairman of the SPD parliamentary group in the Bundestag and entrepreneur Sarna Röser. They all share concern about Germany’s economic standing, but their views on what needs to be done couldn’t be more different.

Spahn: Economic Shift and Tax Cuts
Jens Spahn, leader of the CDU/CSU parliamentary group, called for an “economic shift back to growth.” As specific measures, he announced in the short term: “30 percent depreciation on equipment investments,” the first corporate tax cut in two decades, and significantly reduced energy costs by 2026 – including the abolition of the gas levy. He emphasized that the reduction of bureaucracy should no longer remain just on paper: “Reporting obligations and receipt requirements must go.”

Zorn: Reforms Yes – But Think Structurally
Armand Zorn, deputy leader of the SPD parliamentary group, expressed openness to short-term impulses but warned against a purely “investment booster”: “We also need structural reforms.” He also pointed out the need for better skilled labor retention and called for a European-coordinated economic strategy.

Haßelmann: Invest Wisely and Socially Fair
Britta Haßelmann, leader of the Greens parliamentary group, stressed the importance of prioritizing public investments: “Transformation, infrastructure, climate protection, education – these are our future fields.” She sharply criticized blanket tax cuts, especially with regard to financing at the local level: “Favorite projects like VAT cuts in the restaurant sector do not belong in the investment program.”

Dürr: Strengthening Trust, Taking Demographics Seriously
FDP leader Christian Dürr praised the planned investment launch but warned against focusing on the wrong priorities: “Permanent subsidies for network fees are not an investment.” For him, the key is: “It’s about the bigger picture – trust in the location, demographics, education, and business-friendly conditions.”

Röser: Europe Needs Economic Strength
Entrepreneur Sarna Röser reminded that Germany must compete in the international arena: “The moral finger-pointing won’t get us anywhere – free trade agreements are not a luxury but a prerequisite for economic strength.” Europe must present itself more strategically and confidently.

Europe, the USA, China – Strategies Against Uncertainty

Geopolitical challenges also came up in the discussion. Jens Spahn advocated for a strong relationship with the USA: “Our security and prosperity depend on the USA.” At the same time, he called for lower tariffs – “0 percent on everything” – and a clear European stance towards China.

Haßelmann countered with a call: “The response to ‘America First’ can only be ‘Europe United’.” Trade agreements must be fair and transparent – national solo efforts have no place in a globalized world.

Conclusion: A Lot of Agreement on the Goal – But Little Agreement on the Way

The debate revealed: The direction – more growth, more investment, less bureaucracy – is largely consensual in political Berlin. However, the means remain highly disputed. Between tax relief, structural reform, social responsibility, and geopolitical challenges, the federal government faces an economic policy balancing act.

The crucial question remains: Can Germany be both the investment driver of Europe and maintain social balance and ecological goals? The time for mere announcements seems to be over.

You can watch the full discussion here.

Location Europe

Panel Discussion: Focus on the European Economic Area – Evaluation of Initiatives to increase Competitiveness and Innovative Strength

In a lively discussion, Marzena Czarnecka, EU Council President, Minister of Industry, and Minister for Energy Security, Republic of Poland, Mark Böhm, CEO of Noventi Health SE, Andreas Mundt, President of the German Federal Cartel Office, and Peter Lochbihler, Global Head of Public Affairs at Booking.com, examined the current political and economic challenges facing Europe – especially in light of the recent elections in Poland and the geopolitical situation.

Europe’s Priorities

Czarnecka views the political situation in Poland post-election as more complex than before but still manageable. From a European perspective, this reflects a general trend toward the right. The EU cannot focus solely on itself but must also compete geopolitically with players like the USA, China, and Russia. Particularly, China is becoming an increasingly dominant economic power, while Russia is potentially becoming more economically dependent on China.

Czarnecka supports the recommendations from Mario Draghi’s Competency Compass:

• Education – The career ambitions of young people often reflect a lack of real-world relevance (for example, 90% of students want to become YouTubers).

• Financial Structure – Europe needs a balance between solidarity at the EU level and national responsibility.

• Economic Security – Companies must be provided with stable and reliable conditions.

Andreas Mundt, President of the Federal Cartel Office, added that while progress is being made, it is happening too slowly. To truly strengthen Europe’s competitiveness, deep reforms must be initiated – particularly in the areas of:

• Education and Infrastructure

• Bureaucracy Reduction

• Digital Sovereignty

• Capital Market Union

Energy Prices – A Central Challenge

Another major topic was the high energy prices in the EU, which are about three times higher than in the US. As a potential solution, Czarnecka sees a balanced mix of renewable energy and nuclear power. France shows that amortized nuclear power plants currently represent the most cost-effective form of energy. Without state support, the energy transition will not be economically viable – public assistance is essential here.

You can watch the full discussion here.

Interview – Live Broadcast

Gerald Braunberger, publisher, F.A.Z., in conversation with Dr Markus Söder, Bavarian Prime Minister  (Member of the Bavarian Parliament, CSU)

Gerald Braunberger: Do you believe that the relationship between Europe and the United States will change?

Markus Söder: We hope that we can manage the situation well. However, what we can truly expect is the unexpected. I feel that the Americans are definitely interested in us – and also in the nation-states. At the same time, there is a significant reserve towards the European Union. The construct is neither fully understood nor liked. Therefore, it is important that all Europeans in the USA do not get involved in individual deals but ensure that the European aspect as a whole is strengthened. We should not split or let ourselves be played off against each other.

Gerald Braunberger: When we look at the economic situation in Europe: Where do we need to make the biggest effort?

Markus Söder: The biggest obstacle is bureaucracy. In addition, energy production needs to be stronger and cheaper. Our costs are, especially in comparison to the Americans, far too high. More investment is needed – in innovation, research, defense technology, and space exploration. These are areas where Europe could expand its strengths. We need to get much more out of the available opportunities, which also depends on the framework conditions.

In the field of defense, there needs to be, besides money, a clear structure: Where should we invest? Drones, missile defense systems, high-precision weapons? Procurement processes also need to be radically streamlined, with long-term and reliable framework conditions.

Gerald Braunberger: Don’t we need much stronger cooperation between governments and businesses in Europe, so that they can order together? One problem with the defense industry is that very few large quantities are produced because everyone has special wishes.

Markus Söder: There is a lot of tug-of-war, and it must be clearly defined who is best at what and where the most effective production should take place.

Gerald Braunberger: Shouldn’t we support private initiatives, like those in the USA, much more? Can we hope to become more competitive with a “Musk-like” approach?

Markus Söder: We should definitely do that. Six years ago, I was already talking about space exploration. A lot of money has been invested since then, we have over 12 billion euros in sales volume and more than 500 companies – it works. Of course, we won’t overtake the Americans so quickly, but we can get closer.

When dealing with our American friends, we should always keep clarity and truth in mind. Cowardice is not rewarded. In the end, only a certain amount of strength helps. Only those who are strong themselves can stand together. I don’t want Europe to end up being just a kind of Disneyland where Americans and Europeans travel to admire how beautiful old Europe was. Where we are good, we need to get better, and where we are bad, we need to get much better.

You can watch the interview here.

SAVE THE DATE 2026

We are very pleased to announce the European Economic Conference (EEC) #5. We will inform you about the program and guests in due course.

We thank the Frankfurter Allgemeine Zeitung and its publisher Gerald Braunberger, the F.A.Z. conference team, and the ESMT for the successful conference and collaboration.

The post Smart Minds Move Europe: European Economic Conference #4 – Review 2025 and Save the Date 2026 first appeared on United Europe.]]> https://www.united-europe.eu/2025/05/key-takeaways-from-the-just-transition-panel-discussion-at-the-global-solution-summit-2025/ Mon, 12 May 2025 12:00:21 +0000 https://www.united-europe.eu/?p=25079 On May 5th-6th the Global Solutions Summit took place at the ESMT Berlin. As part of an institutional partnership, United Europe hosted a closed session about “Powering Europe” and curated…

Germany’s recent federal election produced a fragmented parliament. The FDP is out, and the AFD has emerged as second-largest faction after the CDU. The only viable governing option was a CDU/CSU/SPD “grand coalition” – no longer “grand” in strength but necessary to form a stable government.

Friedrich Merz, poised to become Chancellor, brings valuable European experience from his time in the European Parliament. His leadership could mark a shift toward using the European framework to boost Germany’s and the EU’s global competitiveness – particularly vis-à-vis China and the US.

Main Challenges Ahead:

1. Competitiveness and Economic Growth: Germany needs structural reform, not just budget flexibility. While the outgoing parliament altered the constitution to ease debt restrictions (intended to fund defense and infrastructure), the risk is that access to funding without reform will delay necessary changes to the labor market, industrial and energy policy. Innovation and private investment must be revived if Germany is to reclaim its status as a global industrial leader.
2. Migration Policy: Migration remains a divisive issue. Germany, Austria, and the Netherlands bear disproportionate costs due to generous social systems, which continue to attract more migrants than other EU states. A more equitable European asylum and redistribution system is needed, alongside a reassessment of Germany’s own benefit structure.
3. Security (Internal, External, Cyber): Defense spending is increasing, but without coordinated European platforms, efficiency is limited. Cooperation on areas like satellite internet and joint procurement is essential. Trust in the US, especially under Trump, is low and Europe urgently needs defense sovereignty.

European Dimension and Foreign Policy

Germany’s relationship with France, and with European leaders like Donald Tusk, must be strengthened. Coordination between Central and Eastern Europe is key. The EU must present a united front on global issues and avoid being divided by external actors like Trump, Putin, or Xi. Trade policy, defense cooperation, and energy are all areas requiring tighter integration.

The disappointing outcome of the last European Council – where Ursula von der Leyen proposed €50 billion in support and only €5 billion was agreed due to Hungary’s veto – highlights internal EU weaknesses: Baltic states and Denmark are investing heavily in Ukraine’s defense, while more distant nations show less urgency. Solidarity in Nato and the EU must not be geographical.

Energy and Industrial Policy

Germany’s past focus on renewables only has led to high energy prices for households and industry. A more pragmatic energy policy is needed, balancing sustainability, supply security and affordability. At the European level, the Green Deal now evolved into a “Clean Industrial Deal”, where competitiveness became central again.

Cautious Optimism or Risky Gamble?

There is growing frustration that reforms always follow money, rather than preceding it. The recent weakening of the debt brake may offer short-term fiscal flexibility, but without parallel reforms, it risks entrenching stagnation. A private four-eyed discussion between Merz and Klingbeil may have included a promise to reform in exchange for budgetary leeway – but that remains to be seen.

In conclusion, Germany stands at a crossroads – its domestic policy, European stance, and global strategy all demand decisive leadership. The question is: Can this coalition deliver?

Since Jacques Delors introduced the concept of the Single Market in 1985, the EU has evolved, now comprising 27 member states with increasingly complex legislation and potential benefits from economies of scale. Commissioned by the European Council, Letta’s report offers a strategic plan for deepening the Single Market in the coming European Commission term, calling for immediate action.

Key Takeaways:

Financing Strategic Goals: The EU’s ambitions – such as the green and digital transitions, defense capabilities, and potential enlargement – face a critical funding challenge. Letta argues for leveraging the Single Market by mobilizing both private and public capital, beginning with a Savings and Investments Union that expands on the existing Capital Markets Union initiative.

Incomplete Capital and Banking Union: One major gap in the Single Market is the absence of a unified capital and banking union. Initially designed to keep London as Europe’s financial hub, Brexit forced a shift, with Paris now hosting the European Banking Authority – a change some member states, like Luxembourg, oppose. Cross-border mergers, such as Unicredit’s attempted acquisition of Commerzbank, highlight the lack of cohesion in financial regulations and resistance to fully integrating the banking sector.

Promoting Private Sector Involvement: To advance the Single Market, Letta emphasizes the need for robust financial markets that encourage private sector investment in public projects, making the costly transition towards full integration achievable.

European Code of Business Law: Enrico Letta advocates for a European Code of Business Law as a transformative measure to unify the EU Single Market, creating a standardized “28th regime” for business operations across member states. This code would simplify the complex web of national regulations, enhancing the ease of cross-border business within the EU. By codifying business law at the European level, Letta believes the EU can better compete with larger markets like the U.S., making expansion within Europe more attractive, particularly for start-ups.

Infrastructure Challenges
Letta’s report also addresses the fragmented state of critical infrastructure sectors – such as transportation, energy, and telecommunications – which are still largely managed on a national level. For instance, Europe lacks a cohesive high-speed rail network connecting major cities, limiting integration and cross-border mobility. The energy and telecom sectors face similar issues, where national boundaries and legacy stakeholders hinder seamless operation. Letta suggests simple yet symbolic reforms, like adopting a unified European dialing code, to reinforce a more integrated European identity and functionality.

Defence spending
Enrico Letta stresses the importance of increasing defense spending across Europe to address rising security challenges, especially due to the conflict in Ukraine. He believes that a robust European defense policy would reduce reliance on the United States, enabling greater strategic autonomy for the continent. Letta calls for enhanced cooperation within the EU to build stronger collective security and defense capabilities.Currently, of the €140 billion Europe has allocated to support Ukraine, 80% has gone to jobs outside the EU (mainly in the U.S., Turkey, and South Korea), leaving only 20% benefiting Europe. Letta argues this ratio should be reversed to 80% in favor of Europe to boost local job creation and gain public support from EU taxpayers.Enrico Letta notes that defense is not part of the EU single market, with member states following mostly national strategies. This approach raises costs, adds complexity, and limits interoperability, ultimately weakening Europe’s overall defense capacity. Greater European investment in defense could also serve as an opportunity to renew cooperation with the UK, with both sides showing interest in developing a Common Defense Market.

The Time to Act is Now: The Letta report offers a compelling case for urgent action. He  underscores that the time for decisive action is now; realizing a fully integrated Single Market requires political commitment and concrete steps by EU leaders. Ursula Von der Leyen has taken Letta’s report seriously and has included several proposals in the mission letters to her new Commissioners. European citizens also view reforms of the Single Market positively. Look at how much opposition there was to the Euro. Yet surveys show that 75% of Eurozone country citizens are now satisfied with the single currency. Also, the most challenging project was achieved, the introduction of the EURO, but Europe still has no integrated financial services.

Turning these proposals into reality will depend on political commitment from different key players. The greatest threat to the report’s impact is the drawer – left unread and unimplemented.

We sincerely thank Enrico Letta for his participation and engaged discussion, as well as our board members Paulius Kuncinas and Marcus Lippold for their support in making the roundtable possible and our President Günther H. Oettinger for his keynote speech.

DISE Energy Congresses are international events that bring together renowned industry experts and eneregy market leaders, top managers, politicians, diplomats, experts and academics to speak.

This year’s Jubilee edition of the Congress will particularly resonate with the key challenges facing not only the Polish, but the global energy market. The discussion will focus on issues related to securing national needs for diversification and decarbonization of energy sources, as well as rational management of resources – renewable, fossil, as well as critical raw materials.

If you are interested in participating please email us at events@united-europe.eu.

Over 260 guests registered for the conference, with two-thirds being company representatives, along with representatives from foundations and decision-makers at both state and federal levels. Gerald Braunberger, publisher of the FAZ, and Jörg Rocholl from the ESMT led political interviews featuring Wolfgang Schmidt, head of the Federal Chancellery, and Friedrich Merz, chairman of the CDU, among others.

Advantage Europe – Why Europe plays a decisive role: “The European Union is Germany’s most significant national concern,” quoted Wolfgang Schmidt, head of the Chancellery, referring to Chancellor Olaf Scholz’s statement. “Our focus is always on ensuring that the EU prospers and that compromises are achievable. As Ivan Krastev once observed, many citizens are uncertain about the future and fearful of losing their status. So, how do we restore competitiveness and regain the trust of our citizens? Three key priorities stand out: securing reasonable and affordable energy prices, reforming network fees, increasing the supply of liquefied natural gas, and addressing the shortage of skilled labor and reducing bureaucracy. Structurally, we must also significantly accelerate the expansion of renewable energies. To meet our goal of generating 80 percent of our electricity from renewable sources by 2030, we need to install the equivalent of 43 soccer fields of photovoltaic area every day until then. And here’s the good news: we are already achieving 35 soccer fields per day.”

You can watch the entire interview with Wolfgang Schmidt here.

“The EU needs to become more competitive,” Merz and Schmidt agreed, particularly in comparison to the USA and China. Another deficit of the EU, according to Merz, is the lack of a unified European capital market. Companies like CureVac and BioNTech prefer the New York Stock Exchange over European exchanges. Merz also emphasized the need to build a European defense industry. “With our fragmented industry, we are not able to be competitive. Out of 100 euros, 80 euros go to companies outside the EU. We need to stop designing specifications for joint projects in such a way that they become national projects again. We need to move towards joint projects. If it doesn’t work with all 27 states, then with those who are willing,” said the CDU party chairman.

You can watch the full interview with Friedrich Merz here.

“Cutting red tape: wish or reality?” asked Peter Adrian, President of the DIHK, Jörg Dittrich, President of the Central Association of German Crafts, and Klemens Haselsteiner, CEO of STRABAG SE. If we want to regain our competitiveness, we need to regain trust. Bureaucracy promises security to a dissolving security society, but this promise is no longer deliverable. Trust in the future and in society is needed. For the transformation process, entrepreneurial freedoms are necessary, and we need streamlined and unified regulations. Europe must look beyond its own borders. How can we align our trade policy with America, China, and Asia? The Commission must set framework conditions that ensure international competitiveness and allow the economy to breathe. After the Green Deal, the needs of small businesses and industry must be addressed.

This was followed by the Economy Talk with Vanessa Cann (Co-Founder of nyonic and Board Member of the AI Association), Julia Reuss (Public Policy Director for Central Europe at META), input on the US election campaign from former Obama’s campaign advisor Julius van de Laar, economic keynote speeches by Michael Kotzbauer (Board Member of Commerzbank AG) and Wolfgang Meier (CEO of Pirelli Deutschland GmbH), focusing on green financing and investments in high-tech locations.

Günther H. Oettinger, President of United Europe, who opened the second day of the third European Economic Conference, initially had little positive to say in response to Heike Göbel’s opening question, However, he also saw opportunities that Europe should seize.

“We always thought the West had won, that democracy would be exported, that it would have radiance and appeal. And now the backlash. We are in the middle of a battle of systems. How can democracy withstand autocracy and dictatorship, how can the social market economy withstand the planned economy, how can peace and respect for borders be maintained? We are doing too little for our security. We need a Europe that protects, with a strong Germany, with material, financial, and regulatory efforts also against fascists and populists from the right and left.

The citizens of Europe expect more to be done for security. Countries bordering Russia are already acting accordingly. There will be no defense commissioner in Europe because there is no European army. But there can be a commissioner for armament who efficiently develops the defense industry, reduces 16 types of tanks to two, promotes standardization, achieves synergies in weapon systems, and ensures the stockpiling of weapons and ammunition at the European level.

Competitiveness
In the last five years, the word “competitiveness” was not welcome in Brussels. But now we have a development that challenges the Green Deal. Commission President Ursula von der Leyen has announced that there will be an Industrial Deal alongside the Green Deal. Climate protection is undoubtedly a top priority. However, the approach that Europe and Germany are currently taking is far from exemplary. China is responsible for 33% of global greenhouse gas emissions, the USA accounts for 16%, India for 9%, Europe for 7.5%, and Germany for 2%. If we fail to achieve a smart balance between pragmatic climate protection, industrial growth, and competitiveness—particularly for small and medium-sized enterprises—and if we do not maintain and enhance prosperity, others will not follow our lead, and we will not establish ourselves as leaders in this domain.

Lisbon Strategy
In 2000, we decided in Lisbon that we wanted to become the most innovative and creative continent in the world, but since then, we have been falling behind annually. The USA is growing by 2.5% this year, Europe by 1%, Germany by 0.2%. And if we do not significantly increase competitiveness of our industry with more research funding, with longer working hours, we will not move forward.

“Competitiveness” means maintaining and making our quality of life, standard of living, and foundations future-proof. “It’s the economy, stupid”: This applies to Europe these days more than ever. Mandate holders in Brussels must strive for economic growth.”

What Are Europe’s Opportunities?

Horizon Europe
If we do not invest more in European research networks, we will never be able to compete with the research power of California, Boston, Shanghai, and Beijing. We will not be able to keep up with Microsoft, Google, Apple, or the American defense industry. But in the European team—Delft, Munich, Aachen, Darmstadt, Milan, Oxford, London, and Zurich—we have the potential, the excellence, and the capacity. Therefore, we need more funds; this network must be supported with European funds.

Internal Market
The capital markets union is currently a hot topic: Capital in Europe is flowing out, and there are not enough incentives for fundamental reform. We urgently need a single market for money and investors in a pan-European context. As the ECB lowers interest rates, one question becomes increasingly clear: What does fiscal discipline mean? It starts with the debt brake in Germany, continues with the Maastricht criteria, and concerns the immensely high national debt in France and Italy. I believe that Triple A ratings and the creditworthiness of Europe and its nation-states must be a focus in the coming years. I don’t know if I will live to see it, but at some point, the fiscal situation in the USA will burst. In the long run, this development will not be successful.

What Happens After the European Elections?
In the face of wars and crises, Europe should not wait until October to know who will take which positions and how top posts will be filled. Europe, Macron, Scholz, and Tusk, should strengthen their cooperation. Germany should not snub its partners, such as France, by ignoring any of the neighbor’s concerns.

Bureaucracy
Ms. von der Leyen promised: One in, one out! The result of the European machinery was four in, one out! The Carbon Border Adjustment Mechanism, Taxonomy, ESG, CSR, Corporate Sustainability Reporting Directive are just some of the regulations, mandates, prohibitions, and reporting requirements for European companies. We need to bolster security and reduce bureaucracy. This must also become a focus, or else anti-Europeans will continue to be on the rise.

The time of decline has begun for the West, for democracy, for prosperity, and for growth. Resisting that will be the art of the European Union in the coming years. The EU needs to become more effective in handling major issues and leave people and member states alone when it comes to smaller matters..”

You can watch the full speech by Günther H. Oettinger here.

For more information and videos on all the panels of the third European Economic Conference, please visit the European Economic Conference website at the following link.

SAVE THE DATE 2025

We are very pleased to announce the European Economic Conference #4. We will inform you about the program and guests in due course.

We thank the Frankfurter Allgemeine Zeitung and its publisher Gerald Braunberger, the F.A.Z. conference team, and the ESMT for the successful conference and collaboration.

Agenda: 
1. Welcome
2. Overview of Election Results
3. Analysis of Key Trends and Patterns
4. Implications for European Policy and Governance
5. Opportunities and Challenges Ahead
6. Open Discussion and Q&A

We look forward to your active participation and meaningful contributions to this important conversation.

The EU is essential for Europe’s economy and freedom. It creates a common market of over 445 million people, providing unprecedented access to trade, investment and innovation. By promoting the free movement of goods, services and capital, the EU enables businesses to realize their potential, open up new markets and generate growth. The third F.A.Z. European Economic Conference in the ESMT in Berlin provides a platform for representatives of European business, politics and academia to discuss the role of the EU in promoting economic growth, social cohesion and sustainable development. The conference promotes relevant debates and solutions for a strong Europe. We invite everyone to get actively involved and shape the future of Europe together.

The F.A.Z. European Economic Conference provides a platform for high-caliber representatives of European business, politics and science to discuss the role of the European Union in promoting economic growth, social cohesion and sustainable development. The conference promotes relevant debates on current challenges and solutions for a strong Europe – in the year of the 2024 European elections, this discourse is more important than ever!

Prof. Harald James, from the Princeton School of Public & International Affairs, will open the EEC with a keynote speech on “Europe is stronger than we think”. Other guests are, among others, Friedrich Merz, Chairman of the CDU Germany and Chairman of the CDU/CSU parliamentary group in the Bundestag; Wolfgang Schmidt, Federal Minister for Special Tasks and Head of the Federal Chancellery; Peter Adrian, President of the German Chamber of Industry and Commerce, Dr Marie Jaroni, Head/SVP Decarbonisation, ThyssenKrupp Steel Europe AG,  and Günther H. Oettinger, President United Europe e.V.

Over the past decade, the Munich Cyber Security Conference (MCSC) has been a pivotal platform fostering global dialogue on cyber threats. From groundbreaking keynotes to collaborative workshops, MCSC has navigated the evolving landscape of digital security. The MCSC (15 February to 16 February) reflects at this milestone event on the next era of cyber resilience. #MCSCAnniversary

Please consult the MCSC Website for references of past editions including the conference report 2023.

Recent electoral outcomes have been disheartening in Europe, marked by the rise of populist forces challenging the very foundation of the European Union. Two decades ago, Europe stood as the most innovative continent, but today it faces a stark reality: proficiency in regulation, yet a glaring deficit in its implementation.

Energy Security, Supply Chain Dependencies, Innovation, and Energy Prices have become paramount concerns for major European capitals, particularly Paris and Berlin. The question of dependency looms large, highlighting the critical role of nuclear and gas in sustaining energy-intensive industries.
Recommendation 1: As Germany and the rest of Europe navigate this landscape, a strategic and smart industrial policy becomes imperative: Europe is positioned ahead in innovative grid systems, and this presents a unique opportunity to lead in technology and software.

Furthermore, the Franco-German relationship emerged as a linchpin for European success. Surprisingly, the most consequential election for Europe is not the European Elections but the US election, as the potential return of Trump 2.0 looms large. In the face of those shifting dynamics in the US, Europe must act strategically.

Recommendation 2: While not all policies need Europeanization, energy policy demands a united front. Here, a stronger voice from the energy sector is crucial, to keep pushing policymakers towards a European approach. The shift toward renewable energy production in Europe’s peripheries must be a key focus for the next commission. By connecting regions with abundant resources in the south and the north with industrial hubs in the centre, Europe can optimize energy distribution, and supply chain dependency, promoting unity and resilience in the face of global challenges.

As Germany, France, and Brussels are unprepared, concerns about the ability to support neighbours like Ukraine in crisis are rising. The war in Ukraine transcended regional conflicts, shaping the rules of 21st-century Europe. Russia’s attempt to reintroduce imperial rules created a half-circle of instability around the European Union, affecting countries from the Sahel to the Baltics.

Recommendation 3: The potential re-election of Trump in 2024 adds complexity and emphasizes the need for a genuine European defence market and investment in military mobility. To address Europe’s strategic capability gaps, the establishment of an EU Defense Advanced Research Projects Agency is needed and finally, the outdated antagonism between the European Union and NATO must be overcome.

Inspired by the recent United Europe CEO Lunch in Paris.

On November 20th of this year, Federal Chancellor Olaf Scholz is hosting the first Compact with Africa summit under his leadership. The initiative, launched by Germany in 2017 through the G20 Finance Track, aims to improve the investment conditions in participating African countries and, ultimately, promote European investments in Africa. The track record is mixed. We will discuss the reasons for this, the status of the initiative, and how it can be designed to be more successful for all parties and geared towards sustainable economic growth with representatives from academia, business, and politics.

The program is structured as follows:

• Welcome by Member of Parliament Dr Karamba Diaby
• Keynote speech by Prof. Stefan Liebing: “Between Wishful Thinking and Reality: A New Perspective on Investment Opportunities for German Companies in Africa”
• Presentation on Rwanda (Students from Hochschule Flensburg – Flensburg University of Applied Sciences): “Realistic Opportunities for Economic Cooperation, Using Rwanda as an Example”
• Q&A Session
• Closing remark

The panel discussion is moderated by Sabine Odhiambo (Secretary General of the Deutsche Afrika Stiftung – German Africa Foundation

The number of participants is limited to 40 people. Please confirm your participation no later than November 6th via email to karamba.diaby@bundestag.de. Late registrations cannot be considered. When registering, please provide your name and date of birth.

We look forward to your participation in this exciting event, which will be conducted in German with English translation.

Journalist Mercy Abang spoke with CEO of Conjuncta Prof Dr Stefan Liebing, MEP Hildegard Bentele, Head of Division for Pan-African Issues, Southern Africa, African Union and Great Lakes Region at the Federal Foreign Office Sarah Bernardy, and accomplished investigative Journalist Tomi Oladipo and Hannah Ajala about the prospects of the EU fostering a more integrated strategy for connecting Africa and Europe. We would like to thank HE Ambassador of Malawi to Germany Joseph John Mpinganjira for attending the panel discussion.

The debate took place as part of United Europe’s EU-Africa Advocacy Seminar: “An African Perspective on EU Africa Relations, a shared vision for both continents”. United Europe’s recently elected Vice President, Cathryn Clüver-Ashbrook alongside Secretary General at the German Africa Foundation (DAS) Sabine Odhiambo, commenced the seminar with captivating keynote speeches followed by contributions from Fatu Ogwuche (CEO at BigTechThisWeek), Muhammad Sani (Former Commissioner of Kaduna State, Nigeria), Emmanuel Uwandu (CEO at GAS360), Ferdinand Pavel (Director at EY), Cheta Nwanze (Analyst at SBM Intelligence). You can see a recording of the seminar on United Europe’s YouTube Channel.

Below please find a summary of some of the debate’s interventions and opinions of our guests on selected topics.

Journalist Mercy Abang initiated the debate by recognizing the EU’s commitment to human rights, which is a widely shared perspective in the Global North. However, recent events have led to criticism of the EU’s response to crises, particularly the plight of migrants from Africa in the Mediterranean. The sinking boat carrying migrants highlights either potential hypocrisy in crisis management or, at the very least an apparent blind spot in addressing the African crisis, Abang said.

MEP Hildegard Bentele acknowledged the importance of honest and open dialogue about Europe’s interests in Africa. Global Gateway, a European exercise aimed at providing digitization and infrastructure to Africa, has faced challenges and to compete with other global powers, the EU needs to increase efficiency and agility: “The limited awareness of the Global Gateway initiative in Africa is concerning and the EU is actively pursuing to improve visibility,” Bentele said. Observers have noted that interregional activities within Africa seem to take precedence over Europe’s Global Gateway initiative. The EU’s lack of unity and perception as individual member states instead of a cohesive entity is part of the problem. The concept of ‘Team Europe’ needs to be strengthened, Bentele concluded.

Stefan Liebing, CEO of Conjuncta, highlighted that Africa’s population growth demands the creation of 20 million new jobs each year and that Europe has a vested interest in supporting Africa to prevent deepening migration challenges. Finding common ground is essential for both parties, he said: “As someone who has headed the Afrika Verein, I have noticed a recurring theme in speeches over the past two decades: Africa’s tremendous potential. Instead of dwelling on what divides us, it is time to shift focus towards identifying mutual interests and shared goals.”  The German trade volume with Africa is about as high as German trade with nations like Czech Republik or Denmark. It is important to address this disparity and foster stronger economic ties. Currently, there is a rising group of African countries emerging as energy providers and recipients of new green energy payments substituting petrodollars. Europe with its energy needs, presents Africa with substantial opportunities for collaboration. There exists a significant overlap where our efforts can intertwine and yield fruitful results.

To effect change, two critical areas require attention:

1. Mitigating Risk Aversion: Small and medium-sized enterprises (SMEs) tend to be more risk-averse compared to multinational corporations, which have the capacity to absorb potential failures. To encourage SMEs to engage with African markets, we need to provide them with increased access to finance and guaranteeing instruments. Existing banking regulations often hinder European banks from financing large-scale projects. A fair distribution of risks between the public and private sectors, along with regulatory adjustments, is necessary to facilitate financing opportunities.
2. Enhancing Education and Collaboration: Many German SMEs lack familiarity with African markets and require education and support to expand their horizons. Creating success stories in each African country will play a pivotal role in changing the mindset of German entrepreneurs. To achieve this, a collaborative effort involving the German government, embassies, financial institutions, and businesses is needed. Establishing one significant success story will provide the impetus required to alter perceptions and convince entrepreneurs that the risk lies in not engaging with Africa. Additionally, exploring innovative financing models and developing new organizational systems tailored to the African continent’s unique challenges are necessary.

Furthermore, Europe must fulfill its climate commitments by mobilizing a substantial amount of green energy imports such as hydrogen, to replace oil, gas, and coal. Africa, with its abundance of sun and wind resources, can be a vital partner in producing hydrogen competitively and sustainably. It is vital to learn from previous discussions and accelerate progress in this area.

The challenge of job creation in Africa demands concerted efforts and collaboration. It is time to look beyond differences and focus on shared interests, Liebing stressed. Facilitating financial access, promoting education, and fostering innovative financing models will lay the groundwork for increased European engagement in Africa. By embracing these opportunities, Europe can bolster its energy security, meet climate targets, and contribute to Africa’s development while avoiding future migration challenges. “The time for meaningful action and cooperation is now, and together, we can build a stronger future for both continents,” Liebing concludes.

Sarah Bernardy, Head of Division for Pan-African issues, Southern Africa, African Union and Great Lakes at the Federal Foreign Office, referred to founding documents of the African Union and emphasised that human rights are universal values and should not be seen or phrased as „European values“. Furthermore, the majority of Africans prefer democracy over other political systems and endorse democratic norms. Asked about visa application procedures that seemed to be particularly long for Africans, Ms. Bernardy said that she understood the frustration if people had to wait for long time for a visa and that the Federal Foreign Office was working on digitalisation of visa procedures. However, visa requirements did not differ from one region to another. With regard to foreign investment in African countries, investment conditions were often not attractive enough for foreign investors. „It is crucial to establish the right framework and uphold the rule of law. Without these essential elements, a significant portion of what is often referred to as “risk capital” ends up being lost, diverting funds that should be invested directly into the project itself.“ Compared to e.g. Chinese investment in infrastructure projects, European and German engagement in Africa may not always be immediately visible, since a lot of German and EU funding was spent in structures and frameworks to enable sustainable development and business growth. Recognizing that there is still much work to be done, Germany and the EU remain committed to investing in these endeavors and Global Gateway would be one example for this commitment.

Investigative Journalist Tomi Olidapo thinks that it is time for Europe to return to the drawing board and explore alternative solutions. Europe needs to navigate its double standards and reimagine solutions.

When Nigeria sought military assistance in its fight against Boko Haram, the United States declined due to concerns over Nigeria’s military human rights record. This decision highlights the complexities surrounding international support in the face of such challenges. However, it also raises questions about the selective approach taken by certain countries when offering solutions. “Consider the recent events in Chad. Following the death of Idriss Deby, President Emmanuel Macron of France arrived in Chad and showed support by embracing Deby’s son, who then assumed power through a coup. This situation exposes a discrepancy in how democratic principles and the rule of law are upheld by Europeans. Such inconsistencies give rise to legitimate concerns about the European Union’s stance and actions. It begs the question: What can we truly expect from the EU?” Olidapo said.

Many of the challenges on the African continent extend beyond security concerns and encompass issues of development and education. While Europe focuses on attracting Africa’s skilled workers to meet its own interests, it is crucial to consider the consequences for Africa as a whole. “We must reflect on what these skilled individuals leave behind and the impact on the continent’s progress. The EU-Africa relationship is riddled with double standards and inconsistencies, particularly when it comes to offering solutions.” It is crucial to acknowledge the limitations of current approaches and reimagine more effective strategies. By engaging with African countries individually and tailoring solutions to their specific needs, Europe can better address the development and educational challenges that underpin many of the issues on the continent. As Europe pursues its own interests, it must also consider the consequences for Africa as a whole, striving for a more equitable and mutually beneficial partnership, Olidapo concludes.

We extend our heartfelt gratitude to contributors, speakers and participants for joining us in Berlin and online.

Guests included, among others,  Lars Klingbeil, Chairman of the SPD, Member of the German Bundestag, Dr Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, Dr Magnus Brunner, Minister of Finance of the Republic of Austria, Dr Daniel Risch, Head of Government of the Principality of Liechtenstein and Günther H. Oettinger, President of United Europe.

All speeches and panel discussions can be found at the following link (in German language). Please find attached brief summaries of individual speeches and statements from some panel discussions.

Lars Klingbeil, Chairman of the SPD, Member of the Bundestag: Introductory Keynote: Politics in Times of Constant Change

The transition to a climate-neutral and digital society is the most important socio-political project of the coming years.

We have to recognise that the world is in upheaval, that new centres of power are emerging and that the rule-based order as we know it is under pressure. A strong Europe is one of the most important aspects if this transformation is to succeed.

Nevertheless, the forthcoming decade or two will likely be marked by significant turbulences, requiring us to navigate numerous challenges. It is crucial to acknowledge that Europe does not hold sole responsibility for driving this process. Rather our focus should lie on fostering resilient supply chains, harnessing resources efficiently, and establishing novel free trade zones. In Europe, we must understand that this transformation is not only an economic endeavour but rather a political undertaking.

China is pursuing a tough, state-controlled industrial policy; in the US, too, we see massive state intervention in economic policy with the Inflation Reduction Act. Europe has long shaped global economic policy; now we need a new interplay of state and market, a policy along the broad lines of decarbonisation, digitalisation and resilience. New goals need to be agreed upon at the European level. Not “Europe first”, but “Europe fast.”. We must expedite planning procedures and implement smart regulations while avoiding excessive centralization at the European level. The current fragmentation of the single market necessitates a focus on deepening its integration. This involves realizing the potential of a digital union further developing capital markets, completing the banking union, and establishing a European energy union with enhanced grid and storage capacities. Moreover, we should actively pursue new free trade agreements and increase investment in strategic partnerships.

See the full speech here.

The Political Interview with Dr Robert Habeck, Federal Minister for Economic Affairs and Climate Action and Gerald Braunberger, Publisher, Frankfurter Allgemeine Zeitung

For Europe to maintain its competitiveness and prosperity, tangible solidarity in infrastructure is essential. The European Commission holds a pivotal position in this regard, as Europe demonstrates its resilience under pressure. When it comes to the green transition, Europe exhibits a collective commitment, despite its diversity as evident in initiatives such as the Green Deal, the ongoing Fit for 55 negotiations, and the implementation of ETS1 and ETS 2.

Regarding European Competitiveness, the American “Inflation Reduction Act” is viewed as a declaration of war. Countries like the United States and others are making investments despite their significant national debts, setting them apart from Europe on a global scale.

Non-European nations such as the US and South Korea are actively pursuing investments in solar and hydrogen energy. If we fail to keep pace with these developments, we risk losing out on the opportunities they present. Europe’s commitment to fiscal discipline aligns with the fundamental principles of a market economy which is commendable. However, in sports like football or handball, if the opposing team plays aggressively and the referee fails to enforce the rules, victory becomes elusive. Nonetheless, despite the slightly pessimistic sentiment, recent years have demonstrated Europe’s true capabilities.

If we can address the energy crisis, we can also confront the climate crisis and achieve our targets. While we may not have reached that point just yet, we possess the potential to do so. Cultivating a positive outlook is crucial in combating internal divisions. Otherwise, the voices that don’t want a solution will win, and then there will be no solution.

Please find the full interview here.

Strengthening Europe’s Energy Supply – Focus on Competitiveness

A panel with Sven Astheimer, Head of Corporate Affairs, Frankfurter Allgemeine Zeitung, Prof. Dr Lion Hirth, Professor of Energy Policy, Hertie School, Dr Markus Krebber, Chairman of the Executive Board, RWE AG, and Christian Kullmann, Chairman of the Executive Board, Evonik Industries AG.

Sven Astheimer: How competitive is Europe?

Christian Kullmann: The statement suggests a rhetorical question, implying that Europe’s competitiveness is currently lagging behind. Two examples can be provided to support this claim: 30% of sales are made in the USA, where the cost of a kilowatt hour is 1 to 2 cents. Meanwhile, in Germany, discussions are underway to implement an industrial electricity price of about 6 cents per kilowatt. We are talking about 6 cents, and we deliberately do not mention that there will be taxes and levies on top of that. Thus, the focus should not be on whether Europe is competitive, but rather on the necessity of implementing significant changes.

Sven Astheimer: What specific commitments can you offer to enhance our competitiveness in the future?

Dr Markus Krebber: Europe needs to consistently compete with non-green energy supply policies. Such competition hampers Europe’s competitiveness and emphasizes the importance of considering climate protection as a global consensus that involves all regions.

Sven Astheimer: Is the German government on the right track with its energy and industrial policy?

Prof. Dr Lion Hirth: The price of energy is crucial. Currently, subsidizing electricity with taxpayers’ money means that the funds are missing elsewhere. This is a question that needs to be decided politically. What should the price of electricity be? The energy-intensive industry will have to adapt, i.e., utilize electricity when wind and solar power are available. However, this is not possible if energy-intensive companies require electricity constantly, regardless of fluctuating prices. The mistake we should avoid is using an industrial electricity price to make companies believe that the electricity price will remain at 4, 5, or 6 cents, thereby reinforcing the outdated notion of permanently operating base load plants. If we aim to support the industry, we must embrace industrial flexibility, which will vary across sectors and is not free.

See the full discussion here.

Günther H. Oettinger, President of United Europe: The opening impulse of the 2nd conference day:
Peace, values, economic strength – an Agenda 2030 for Germany and Europe

Next year is set to be a pivotal moment for both European and US politics, as it will be a super-election year that shapes the tone for the entire next decade. Currently, we are witnessing diverse trends across Europe. On one hand, conservatives are maintaining or even strengthening their positions, – as evident in Greece and possibly Spain. There is also a possibility of populist movements gaining ground. To approach the European elections seriously, it is crucial to strengthen democratic parties rather than resorting to protest votes on either extreme. Unfortunately, Europe is lagging behind.

Germany is anticipated to experience a year of recession and stagnation all year, while the world is growing at a rate of 3 or 4 percent, and Europe is falling behind. This issue revolves around competitiveness: if we fail to reinforce our strengths and address our shortcomings, Europe’s influence and authority will decline. We must also establish a technological advantage in key areas such as defence, mobility, communications and engineering. Regrettably, I observe insufficient collective efforts to preserve and restore our position, particularly in Germany. The country index by ZEW, commissioned by the Foundation for Family Businesses, has shown that Germany has dropped from 14th to 18th place among 21 democratic industrialized countries. That’s not the Champions League.

There appears to be a lack of recognition that innovation is essential for sustained prosperity.

The upcoming US election in November carries the possibility of Trump returning to power. We must hope that the voters will protect us from that outcome. The question arises: Are we capable of global politics? Can we speak with a unified voice? We are far from prepared, but time is running out. If Trump is reelected, the focus will shift to America First, rather than the transatlantic partnership, NATO, the global economy, or the rules-based order. It disappoints me to see a country spending months debating thermal energy legislation and neglecting crucial aspects of the German discourse on Europe’s future. We are consistently lagging behind. Germany must finally realise the significance of t trade agreements. If we had not opposed TTIP due to concerns about chlorinated chicken, the Inflation Reduction Act would not be detrimental to the German industry. We have put the Mercosur agreement, the fastest-growing market after Asia, on hold. RCEP poses a significant challenge, and if it becomes the benchmark, Europe will be left behind.

We must learn at an accelerated pace and draw clearer conclusions. Europe is sluggish, and Germany in particular is moving too slowly.

The next year will determine the direction of European policy, and three conceivable trends emerge. Firstly, there could be a left-liberal, green and socialist majority. Secondly, we might witness the formation of another significant Labor coalition. Lastly, a conservative development is possible, but it is unlikely without populists holding a majority position. The question remains: Where is populism still considered acceptable, and where is radicalism, anti-Europeanism, malice or even contempt for all values or the destruction of Europe as genuine objectives? Consider the AFD and Le Pen.

I implore all of us to generate interest n the European elections. Failing to maintain and enhance prosperity will only fuel the rise of extreme ideologies from both the right and left.

See the full speech here.

Panel – Beyond the Boys’ Club: Why Diversity in Leadership gives Europe a competitive edge and how we get there

Under the chairmanship of Johannes Pennekamp, Head of Department, Frankfurter Allgemeine Zeitung, Regine Büttner, Global Board Member Human Resources for DHL Express (until 2022), member of the Supervisory Board and founder of the FEM Factory, Tanja Gönner, Chief Executive, BDI e. V., Elke Heitmüller, Head of Group Diversity Management, Volkswagen AG and Dr Miriam von Loewenfeld, Programme Director of the Female Leadership course at the University of Applied Management and founder of the FEM Factory discussed the following issues.

Johannes Pennekamp: How can diversity succeed in companies, how can a business strengthen itself? Every second Dax board member is female, but there are still 700 men for every 100 women.

Tanja Gönner: The question of intervening in regulations is not an easy one for the German economy. If I look across the board, there are too few women in management positions in companies. There are conflicting goals here; for every woman, a man has to take a back seat. It is also unpleasant for the women, very few want to be reduced to the quota. Here we have to talk about striking the right balance.

Elke Heitmüller:  The representation of women in technical professions remains relatively low, but there are gradual signs of change. Over the past years, the establishment of a women’s network comprising 800 members through mentoring programs is a notable development. Importantly, half of these women are determined to continue advancing their careers. Diversity is valuable especially companies must strive to incorporate both male and female perspectives. By embracing diversity, we can benefit from a wide range of viewpoints. Achieving gender parity in executive selection committees is a necessary step towards this goal. It is important to recognize that women and men bring distinct perspectives, and it is by integrating these perspectives that we obtain a comprehensive and holistic understanding. Rather than opposing one another, it is a collaborative synergy that enables us to attain a complete picture of the situation at hand.

Regine Büttner: The importance of prioritizing diversity has not been fully recognized to the extent it should be. . Both in Europe and globally, we are falling behind in terms of establishing the necessary infrastructure to support women, enabling them to aspire to and pursue positions of leadership. Unfortunately, women often disengage from companies during their journey towards top management.

Dr Miriam von Loewenfeld: To address the existing challenges, it is imperative that we establish a robust women’s network and ensure the presence of well-functioning infrastructure. This is particularly crucial in regard to providing sufficient spaces in Kitas (Kindergartens). Currently, there is a shortage of 400,000 places in Germany. It is anticipated that this number will further escalate in the future, due to the ongoing scarcity of skilled workers.

See the full discussion here.

The young economy as a driver of the future: Laura Jorde, Federal Managing Director, Wirtschaftsjunioren Deutschland e. V.

According to recent surveys, a significant majority of young executives – specifically two out of three – harbour pessimistic sentiments when contemplating the future of Germany as a favourable business location. Their apprehensions primarily revolve around the prevailing concerns of excessive bureaucracy, a scarcity of skilled workers, and the burden of labour costs. These disheartening statistics have left many bewildered. Why? Because, throughout various crises, ranging from the impact of the pandemic to geopolitical conflicts and the energy crisis, Germany has consistently embraced a forward-looking perspective. It has steadfastly nurtured the belief that it possesses the capability to overcome challenges. However, it is disconcerting to note that little has been accomplished to tackle the truly pressing issues at hand, which encompass bureaucracy, the lag in digitization, and the dearth of skilled workers.

3 points need to be completely rethought here:

• Securing skilled labour can only succeed if we promote and live diversity, equality and participation. Diversity is not a beauty factor, but a hard economic advantage. Germany and Europe are facing a shortage of 5 million skilled workers. We cannot ignore the potential. The entire society must be redesigned – for everyone.
• Digitisation of the administration, strengthening and use of AI
• The young generation must be included. Young societies are more innovative and dynamic, older societies are more structurally conservative. A study from 2022 says that the young economy is creative, dares to do something, and creates change. We value teamwork, empathy and compassion. That’s what makes businesses successful.

See the full speech here.

Mobility Panel: Europe in the fast lane: Visionary Discussion on the Future of Mobility in 2035

Chaired by Johannes Pennekamp, Head of Department, Frankfurter Allgemeine Zeitung, the panel included Andrea Fuder, Executive Vice President Volvo Group Purchasing & Chief Purchasing Officer, Volvo Group, Uwe Hochgeschurtz, Chief Operating Officer, Enlarged Europe, Stellantis, Pierangelo Misani, Executive Vice President Research and Development and Cyber, Pirelli Tyre S.p.A. and Hildegard Müller, President, German Association of the Automotive Industry.

Hildegard Müller: The German automotive industry is aiming for climate neutrality by 2050. But we don’t just have to look at new cars, we also have to look at the existing fleet. We need more than just regulation, otherwise, there will be no added value here – just look at China or the inflation reduction act in the US. We need to be open to technology, which is not an end in itself but an opportunity for options. In the car sector, the focus is clearly on electromobility. Synthetic fuels will be used primarily for the existing fleet. The German government has set a target of 15 million electric cars by 2023, but then we will still have 35 million cars in the fleet, 280 million in the EU, and 1.5 billion worldwide. Our goal remains to go electric, but the problem of the existing fleet remains. Europe is pursuing an energy policy that is below what is needed.

Uwe Hochgeschurtz: There has to be a clear framework. The EU has decided that from 2035 no more internal combustion cars may be sold. This means that the car has its best days ahead of it; it will be climate-neutral, with zero emissions. This also applies to the production of vehicles, which should be climate-neutral by 2038. The future belongs to the electric car, at least in the near future. If you put a unit of energy in here, you get 70% out. The efficiency of synthetic fuels is currently much lower, at 25 to 30 per cent. We should not stop research here, we should continue, but e-fuels are not a serious alternative for the next decade.

Andrea Fuder: Trucks and buses are also being converted to CO2-neutral drives, but there is no deadline for this as there is for cars. We are investing in battery and fuel-powered trucks until 2040. For heavy goods transport, the internal combustion engine is still justified but powered by e-fuels or hydrogen. This openness to technology should be maintained. The transition to electrification is one of the most important answers we have to give. But I doubt that the necessary systems will be ready in time. The biggest problem is the network, the electricity grid. The demand for electricity is huge.

You can see the discussion here.

The European Financial Policy Talk with Dr Magnus Brunner, Minister of Finance of the Republic of Austria, and Manfred Schäfers, Business Editor, Frankfurter Allgemeine Zeitung

Please see the full interview here.

We would like to express our gratitude to the Frankfurter Allgemeine Zeitung and its editor, Gerald Braunberger, as well as the F.A.Z. conference team and ESMT for the successful conference and collaboration.

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