Intense Rivalry or Struggle for Superiority
Europe and Germany are facing a critical juncture as they navigate their economic future. With the global landscape shifting rapidly, it's crucial that forward-looking decisions are made when prioritizing budgets and providing incentives for companies to invest in research and development.
The world is witnessing a trend where economic powers like China, Japan, and the Gulf States are positioning themselves as new partners to emerging economies. This could potentially lead to a loss of competitiveness for Europe if action is not taken.
One potential solution lies in completing the European Single Market, particularly with a banking and capital markets union. Such a move could result in major efficiency gains and reduce the outflow of capital to the USA.
In addition, a strategic foreign trade policy is essential for Europe and Germany to maintain their attractiveness as economic partners and remain globally competitive. Reports by esteemed figures like Mario Draghi and Enrico Letta have underscored the need for comprehensive reforms to improve Europe's competitiveness.
Several European governments, including Germany, have been proactive in this regard. Through welfare associations, social funds, and regional governments in Bavaria, various reports, events, and media pieces have been published, all focused on improving Europe's competitiveness, particularly via social infrastructure investments, labour market policies, and educational support programmes.
Addressing major challenges such as strengthening Europe's defense capability and transitioning to climate neutrality requires more private capital. Investing in research and development is crucial for securing future competitiveness, as demonstrated by countries like South Korea, Israel, the USA, and even China.
A competitive tax system, moderate energy prices, well-trained professionals, and an attractive immigration system for qualified immigrants are all essential for creating favourable business conditions. The Konrad-Adenauer-Stiftung supports this topic through a range of publications and events in Germany and abroad.
In conclusion, Europe and Germany must act decisively to maintain their economic strength in the face of growing global competition. By focusing on strategic foreign trade policies, completing the European Single Market, and investing in research and development, they can secure a prosperous future for their economies.
