Geopolitical risks: How Germany and the EU must prepare for new challenges

Geopolitical risks: How Germany and the EU must prepare for new challenges

According to a report from www.zeit.de,

The negative signs for the German economy are increasing as Donald Trump's lead over Joe Biden becomes apparent in the polls. Dependence on the global market, particularly on China, the USA and Russia, entails greater risks. The possible return of Trump threatens trade restrictions from the USA against the EU, which could lead to falling demand for European products. At the same time, Trump wants to reduce or end US involvement in European defense, which increases uncertainty in the region. In this unstable environment, it is essential that Germany and the EU develop strategies to prepare for these challenges.

The EU has already taken the first steps, but these alone will not be enough. The EU's trade deficit with China has reached alarming levels, and China's dual circular economy is a major contributor. This unilateral derisking for EU member states is considered almost impossible. An EU-wide industrial policy is necessary to ensure success. The takeover of important ports by Chinese companies and the filtering of foreign investments are also a danger. In addition, the representative market structure in Germany is particularly susceptible to changes in international trade.

The possible return of Trump to the presidency and the impending geoeconomic crisis require EU-wide decisions, but influence national structures. Uniform decisions at EU level are urgently needed. This challenge should be intensified by Germany and the EU in order to be prepared for possible scenarios.