IfW Experts Propose Strategies to the new German Government to Tackle Global Economic Challenges

Considering current international developments with the United States (US) imposing and threatening high tariffs and China becoming a stronger competitor in European key industries, Germany’s new federal government, which takes office in May 2025, needs to tackle multiple global economic challenges. In a recent Kiel Policy Brief, experts from the Kiel Institute for the World Economy (IfW), including KCG researchers, Prof. Holger Görg, Ph.D., Dr. Wan-Hsin Liu and Prof. Dr. Wilfried Rickels, propose strategies to the new German government to navigate urgent economic challenges such as the US tariff policy, rising competition from China, climate policies, supply of critical raw materials, new trade agreements and collaboration with the Global South, particularly Africa.

They emphasize that Germany needs to “think and act European” to create a European single market for “digital products, financial services and energy”. Moreover, Germany and the European Union (EU) should use and improve its strong single market to create and ensure a level playing field for European firms when dealing with Chinese threats to European key industries such as the car industry (including electric vehicles) and should create a suitable European regulatory framework for the use of Chinese products or software in critical infrastructure.

The Kiel Policy Brief “Dealing with Global Economic Challenges – An Agenda for the New Federal Government” (No. 182) was published in February 2025 and is available here.

Contact:

Prof. Holger Görg, Ph.D. (holger.goerg@ifw-kiel.de; +49(0)431-8814-258)