Dealing with global economic challenges: An agenda for the new federal government

Europe: • Germany must once again see itself as an important part of and a leading nation within the EU. The new German government should consistently think and act in a European way on foreign trade issues. • Only a strong EU single market can compete on equal terms with the USA and China. Together, the EU has strong market power that can be used to counteract trade-restricting measures and enable fair international competition. • The markets for digital products, financial services and energy are still highly fragmented in Europe. The single market must therefore finally be completed. Furthermore, a strong European market for venture capital, a capital market and banking union is needed. China: • In the negotiations on countervailing duties for electric cars produced in China, the EU should not engage in sham solutions such as minimum prices or import quotas but should insist on the reduction of unfair subsidies and better protection of European companies against discrimination in the Chinese market. The German government should support the Commission in this. • Together with the other EU member states and the Commission, the new German government should quickly develop an appropriate regulatory framework to effectively counter threats to national security that may arise from the use of Chinese products in safety-related areas and critical infrastructures in the EU. USA: • Trump's announced import tariffs on European goods would affect the German automotive industry and other export-oriented sectors. With additional tariffs of 10%, German exports to the US would fall by up to 10% in the medium term. • The EU's united stance on targeted countermeasures and increased investment in defense in Europe should be part of the strategic response to Trump's unpredictable trade policy. At the same time, Europe should champion openness and liberalization in its relations with the rest of the world. Trade Agreements: • The EU Commission's plans to conclude trade agreements with regional communities beyond Mercosur should be supported by the German government. The EU's sustainability standards should be adapted to the level of development of the partners to trade agreements. Africa: • Germany must develop a strategic Africa policy that aims at long-term common interests. Germany should act as a long-term and reliable partner to Africa, taking a leading role within the EU and developing resource partnerships. Migration policy should not aim at isolation but be orientated towards opportunity. Security of raw materials: • The German government should support the EU's plans for intensive monitoring of the supply situation for strategically important raw materials, intermediate and finished products, and define criteria for security of supply in selected areas, such as antibiotics. In addition, it should promote the research for and development of economically superior alternative products European climate policy: • The EU emissions trading system for the transport and building sector should be implemented swiftly and established as a central climate instrument in the long term by adjusting the initial allocation of allowances. CO2 removal should be supported and corresponding certificates stored for later crediting periods. • The introduction of the carbon border adjustment mechanism (CBAM) should be maintained, but other trade barriers should be removed at the same time. Developing countries should be supported in collecting emissions data.