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  • Germany – Italy 0:1

    With the successful takeover bid for Commerzbank by Italy’s UniCredit, one of the biggest power struggles in European banking goes Italy’s way. Is German finance on the defensive?

    BERLIN/ROME (our own report) – The takeover battle for Commerzbank has been decided. Following its successful bid, Italy’s UniCredit has secured just under half of the voting rights and will now be in a position to take control of the supervisory board and executive board of Germany’s second-largest private-sector bank at the 2027 annual general meeting. Not having sufficient resources of its own, UniCredit was supported in this move by a network of international financial institutions, including Japan’s Nomura, France’s BNP Paribas and several US banks. This not only brings to an end a power struggle lasting almost two years between the major banks from Germany and Italy; the takeover also reflects an ongoing process of consolidation across the European banking sector. Whilst Italy’s UniCredit is positioning itself as a powerful new European banking group, Germany is increasingly on the back foot. Commerzbank is a key lender to the German Mittelstand, the country’s once thriving small and medium-sized enterprises. This cornerstone of the Frankfurt financial hub is now coming under foreign control. The conflict highlights a contradiction between European integration of the financial sector and the interests of nation states. The latter seek to retain some control over the centres of their economic decision-making. Read more

VIDEO-KOLUMNE

War against China

There is a reflex in Europe that is detrimental to China. It is the downside of the respectful awe at China's vastness, its size, its culture, and statehood. By comparison, Europe appears tiny. The comparison mitigates the error of being incomparable. China is greater.

Textversion (de/en)

  • The new era of nuclear weapons

    Germany and France launch their first military exercises for cooperation on potential French nuclear weapons deployment. But ‘German bomb’ discussions also continue in Berlin.

    PARIS/BERLIN (our own report) – Germany and France have conducted their first concrete exercises to trial cooperation on potential French nuclear weapons deployments. On Friday the Franco-German Defence and Security Council held a meeting at Nörvenich Air Base, south-west of Cologne. The occasion was used for joint exercises in which two Mirage fighter jets from France’s nuclear forces and two German Eurofighters performed coordinated flight operations, including aerial refuelling. The deployment of German military personnel as observers on a French nuclear manoeuvre is planned for this autumn. The underlying military doctrine, called by the French ‘forward deterrence’ (‘dissuasion avancée’), was introduced by President Emmanuel Macron and publicly unveiled on 2 March. It provides for the sharing of procedures and practices with other European states, including Germany. However, participating European states are excluded from taking part in decision-making regarding the actual use of nuclear weapons, or in the planning of any nuclear strike operations. Here, Paris retains sole command, which is why Berlin had long declined to participate. Domestically, discussions are still ongoing in Germany about an exclusively ‘German bomb’. Read more

  • Thrown off balance

    Merz attends military parade to mark France’s Bastille Day, but tensions rise between Berlin and Paris. Germany goes it alone on rearmament that is outpacing France – with consequences.

    PARIS/BERLIN (our own report) – Rapidly growing tensions between Germany and France are overshadowing German Chancellor Friedrich Merz’s trip to Paris. He is attending France’s Bastille Day military parade on Tuesday. Leading this year’s ‘le 14 juillet’ parade are some five hundred soldiers from countries in the so-called ‘Coalition of the Willing’ actively supporting Ukraine. According to the Élysée Palace, the event is designed to symbolise not only “France’s strategic rearmament” but, above all, “Europe’s strategic awakening”. Yet, Macron’s invitation to Merz cannot hide the considerable resentment in Paris at Germany’s recent actions. Following the decision to withdraw from the joint programme to develop a sixth-generation fighter aircraft, Berlin has launched its own domestic fighter jet project. What’s more, the German side intends to push ahead with single-handedly developing the associated ‘combat cloud’ – rather than in collaboration with France, as had only recently been mooted. Indeed, Paris had already been side-lined in yet another project: the development of a European satellite network. Berlin is now working on its own ‘German Starlink’, which is likely to scupper an envisaged ‘European Starlink’. The latter had long been planned, with France set to play a key role. Experts warn that Germany’s unilateral militarisation drive is throwing the European Union strategically off balance. Read more

  • Book review: Der digitale Raubzug (The Digital Plunder)

    Satyajeet Malik examines the activities of the major digital corporations in poorer parts of the world. Big Tech is driving large sections of the population into dependency and debt – in some cases assisted by German finance.

    The immense power wielded by Big Tech companies is notorious. This power is felt worldwide, but perhaps nowhere as dominantly as in the poorer parts of the world, and especially in the former colonies of European nations. In his recently published book “Der digitale Raubzug” journalist Satyajeet Malik explores the scope of Big Tech’s power and its consequences in the example of Meta’s activities in India. Adding together the Indian users of Facebook, Instagram and WhatsApp – all of which belong to Meta – we get a total number for India of around 1.27 billion. In India, Meta works closely with Reliance Industries, the country’s largest private-sector company. This alliance gives Meta easy access to power and the domestic market. Through its WhatsApp platform Meta engages in Fintech, granting micro-loans to users, especially small farmers. And Reliance uses software to manage farmers’ activities and monitor harvests. The partnership between Meta and Reliance generates huge mutual benefits. But the smallholders themselves are the losers under these arrangements. They are forced into dependency on Reliance and run up dangerous levels of debt with Meta. Farmers ultimately face exploitation and poverty. Malik finds that Big Tech, in this case Meta, and in some instances German Fintech lenders such as the KfW development bank, play a significant role in driving immiseration. Read more

  • Record orders for German warships

    German naval shipbuilders TKMS secure a record-breaking contract to build submarines for Canada – aimed at confronting Russia. Offset deals reduce dependence on the US.

    KIEL/OTTAWA (our own report) – The German warship builders ThyssenKrupp Marine Systems (TKMS) have secured the biggest contract in the company’s history. It will supply a total of twelve submarines to the Canadian Navy for, potentially, around 20 billion euros. As Canada’s Prime Minister Mark Carney announced on Monday, the TKMS 212 CD submarine was chosen ahead of the KSS-III model, which is produced by the South Korean group Hanwha Ocean and had also been under consideration by Ottawa as part of its procurement plans. The deal with TKMS means that the naval forces of Germany, Norway and Canada will in future operate the same type of submarine. In an effort to counter the Russian Navy in the North Atlantic and the Arctic, this group of countries will command an unprecedented fleet of twenty-four Type 212 CD submarines. In addition, TKMS is preparing reciprocal sweetener deals, known as offsets, worth probably tens of billions of euros. They will include the purchase of Canadian liquefied natural gas and the construction of launch facilities for German launch vehicles in eastern Canada. Building a base for carrier rockets in Canada is intended to give Ottawa independence from US launch systems in the space sector. TKMS’ has a huge order book also thanks to major procurements by the German Navy. Indeed, the marine systems group is working on the F127 frigate, understood to be the most expensive project in the history of the German Navy. Read more

  • The European NATO (II)

    Ahead of the NATO summit, Berlin and Brussels announce progress towards a “European NATO”. Washington praises big military spending and accepts German leadership.

    BRUSSELS/BERLIN/THE HAGUE (our own report) – German Defence Minister Boris Pistorius and senior NATO generals report rapid progress in “Europeanising” NATO. As confirmed by NATO’s Supreme Allied Commander Europe, US General Alexus Grynkewich, the European NATO member states have, in just a short while, managed to find replacements for a significant number of US military aircraft, warships and military units that Washington decided to “withdraw” from NATO at the beginning of June. European forces are now on standby for any potential deployment, having filled the gaps left by US units. Last week, Pistorius inaugurated the 1st German-Netherlands Corps in Valga, Estonia, for use as the tactical headquarters for all NATO operations in Estonia and Latvia. It now operates in parallel with the German-Polish-Danish Multinational Corps North-East in Szczecin, which will still serve as the headquarters for operations in Poland and Lithuania. The development of a “European NATO” is attracting praise from Washington. At the Pentagon there is talk of the need for a “NATO 3.0”, a structure which is intended to relieve the burden on the US and enable American operations elsewhere. Washington is also happy to see German taking the lead in war preparations. Read more

  • A sign of weakness

    EU postpones resolution on trade dispute with Beijing until October and backs off punitive tariffs. Simulation by experts of an escalation confirms that China would win.

    BRUSSELS/BEIJING (our own report) – The European Union is refraining, for the time being at least, from imposing punitive tariffs on imports from China or taking other restrictive trade measures. Brussels is keen to reach a settlement with Beijing by October that could resolve its dispute over the bloc’s growing trade deficit with the People’s Republic. This was confirmed by European Trade Commissioner Maroš Šefčovič on Monday following intensive talks in Brussels with China’s Minister of Commerce, Wang Wentao. The dispute stems from the fact that China’s exports to the EU are still rising, while the export performance of Germany and the EU is flagging. However, a study by the Kiel Institute for the World Economy (IfW) shows that Germany’s deteriorating trade balance with China is primarily due to a lack of investment in innovation in Germany. This contrasts with the government’s claim that the German economy is the victim of unfair Chinese subsidies and a massively undervalued Chinese currency. Chancellor Friedrich Merz recently threatened to introduce tough measures against China. But experts warn that this would trigger an economic war that EU would probably lose. This is the conclusion of a recent table-top simulation of an escalating trade conflict and the options available. The study shows that the EU’s decision to back off from imposing punitive tariffs is a predictable sign of weakness. Read more

  • Playbook for mass murder

    Critics blast Berlin and EU for failing to use leverage to end United Arab Emirates’ support for genocidal RSF militia. Empty words won’t stop the Sudan war.

    KHARTOUM/ABU DHABI/BERLIN (own report) – Human rights organisations and foreign policy experts are levelling strong criticism at Germany and the EU for their failure to act over the genocidal war being waged by the RSF militia in Sudan. Civilians are currently facing the threat of another massacre by the Rapid Support Forces. This militia, which has been fighting the regular Sudanese armed forces for more than three years, has a history of major human rights violations and is closing in on the town of Al Obeid, strategically situated between the Nile Valley and the western Sudanese region of Darfur. Previously, whilst seizing towns in Darfur, they had deliberately targeted and murdered sub-Saharan Africans. Most recently, during the capture of Al Fashir, they may have massacred between 60,000 and 100,000 people, selected for killing on the basis of their skin colour. Backed by money from the United Arab Emirates, the RSF is dependent on Abu Dhabi for its weapon supplies. The UAE has been supporting these militias for geostrategic reasons. Experts argue that European and North American countries are perfectly capable of exerting sufficient pressure on the Emirates to make them cease backing the RSF. This move could finally bring the war to an end. However, critics of those in power in Western Europe say they have effectively failed to act. They prioritise unhindered cooperation with the oil-rich Emirates over the prevention of genocidal massacres. Read more