Grimm finds Merz's financial statement inadequate
A Fresh Take on Europe's Roadmap to Power and Security
Economist Veronika Grimm offers a blunt evaluation of the early days of Friedrich Merz's government tenure. Merz has demonstrated a remarkable effort to establish alliances and shift the discourse in foreign policy through his travels. "Cohesion and a better atmosphere are important," Grimm tells "Bild," "but it's far from enough." In her vision, Europe needs to bolster its economic clout and security to make itself an irresistible ally for the US.
The waning might of the West, particularly due to the economic muscle of emerging nations like China, has prompted Grimm's concerns. "The days of Western hegemony are numbered, and Trump isn't the first to realize this," she bluntly states. Europe, therefore, must step up and safeguard its own interests to maintain its alliance with the US.
Germany, in particular, needs to take more decisive action according to Grimm and the Siemens Energy supervisory board member. This involves reducing regulatory hurdles, instituting tax cuts sooner and in greater quantities, lowering labor costs, and enhancing labor market flexibility.
Key Measures for a Stronger Europe
- Investment in Modern Infrastructure and Digitalization
- With large-scale, long-term investment in digital and physical infrastructure, Europe can position itself for future competitiveness and productivity growth.
- Structural Reforms and Encouraging Innovation
- Grimm calls for reforms that support the transition to new business models and industries, as well as targeted support for technological innovation and start-ups.
- Stable and Sustainable Fiscal Policy
- To avoid short-term political gains or non-productive expenditures, strict oversight is required for investment packages, ensuring funds are allocated to genuine investments like infrastructure, education, and clean energy.
- Addressing Geopolitical and Trade Uncertainties
- Europe should beef up its strategic autonomy through energy diversification, supply chain resilience, and joint defense initiatives, while deepening cooperation with the US on mutual interests such as technology, security, and climate policies.
In essence, Grimm and her colleagues champion strong investments in infrastructure and digitalization, structural reforms, responsible fiscal management, and transatlantic cooperation to fortify Europe’s footing. A productive, skilled workforce and a long-term perspective are essential to navigating the geopolitical landscape effectively. Bolstered by these measures, Europe can thrive as an attractive partner for the US, counterbalancing the influence of emerging powers.
- To counterbalance the influence of emerging powers, Europe needs to adopt a strong investment strategy in modern infrastructure and digitalization, as advocated by economist Veronika Grimm.
- In the realm of politics and business, Europe must take decisive action to secure its alliance with the US, as suggested by Grimm, which involves promoting structural reforms, encouraging innovation, and implementing a stable and sustainable fiscal policy.
