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Dealing with Global Economic Challenges: An Agenda for the New Federal Government

with Frank Bickenbach, Eckhardt Bode, Dirk Dohse, Holger Görg, Tobias Heidland, Rolf J. Langhammer, Wan-Hsin Liu, Wilfried Rickels and Moritz Schularick. Kiel Policy Brief, No. 182. February 2025.

An agenda for the new German federal government on the major global economic challenges. Germany must once again see itself as an important part of and a leading nation within the EU: completing the single market for digital products, financial services, and energy is the precondition for competing with the USA and China. Vis-à-vis China, the EU should reject compromise solutions such as minimum prices for electric vehicles and instead demand a reduction of unfair subsidies and better protection of European companies. Announced US tariffs threaten substantial losses for German exports; Europe should respond with unified countermeasures and higher defense investment. Beyond that, the brief argues for concluding trade agreements with regional partners, a strategic Africa policy built on long-term partnerships rather than migration deterrence, systematic monitoring of critical raw-material supply chains, and swift implementation of the EU emissions trading system.

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