Germany drafts EU response to Trump’s policies

The focus will be on financing cross-border rail and road projects, energy networks, external border security, and research.

There are also plans to create a single market for defense products with joint projects in the field of armaments.

Klingbeil intends to promote the idea of Buy European for critical components, including advanced semiconductors.

Germany strengthens its leadership in EU

Under Chancellor Friedrich Merz, Europe's largest economy is seeking to take a more active role in the European Union. This is due to the US's reduced focus on transatlantic cooperation and Russia's ongoing war against Ukraine.

According to sources, Klingbeil will emphasize in his speech at Berlin's Hertie School the importance of rapid trade agreements with India and the Mercosur bloc in South America. This move would be a response to the Trump administration's tariff policy.

Savings and Investment Union

The minister will also propose the creation of a Savings and Investment Union to attract more private capital. He believes that a harmonized and efficient capital market in Europe is necessary for the growth of startups and companies entering new markets.

Klingbeil will emphasize that national attempts to independently implement EU single market rules only increase bureaucracy and fragment the common economic space.

Easier to work across borders

Another area of focus will be the mutual recognition of professional qualifications in EU countries. According to him, this will help stimulate labor mobility.

Klingbeil called small-state particularism a serious obstacle to investment.

The dollar fell sharply against global currencies due to a loss of confidence in US policy after Donald Trump's chaotic actions.

The European Union is discussing how to turn the euro into a global instrument, but internal contradictions are hindering progress.