Germany's waning EU power raises policy questions

Germany's economic and political influence within the European Union is reportedly declining. This shift is prompting a re-evaluation of power distribution within the bloc and its broader geopolitical standing. Research into international trade and production patterns, including global value chains, is actively examining the impacts of technological developments and geopolitical changes on European economic development. The TWIN SEEDS project, for instance, focuses on how these shifts affect employment, job quality, social and regional cohesion, and competitiveness, with its work extending until September 2025. These investigations are crucial as the EU grapples with evolving economic and spatial inequalities.

The ESSPIN project, which aims to re-examine the nexus of social, economic, and spatial inequalities in the EU, highlights how emerging mega-trends are making policy choices more difficult. Such trends include shifts in international relations and security priorities. The recent move by Latvia to secure a substantial €3.5bn SAFE defence loan underscores a rebalancing of strategic investments and priorities within the Union, reflecting evolving EU security policy.

Furthermore, the allocation of resources and strategic priorities within the EU is evolving. The FPrevision4cohesion project, starting in September 2026, will explore the impact of competitive research funding and policy designs on European scientific networks, aiming to understand how these affect regional disparities and cohesion. This focus on cohesion is particularly pertinent as changes in national influence could exacerbate existing inequalities or create new ones.

What this means: The reported decline in Germany's influence is forcing the EU to confront complex questions about its internal power balance and external projection. Research into economic shifts, inequalities, and cohesion will be vital for informing policy in this evolving geopolitical landscape.