Berlin: German Finance Minister Lars Klingbeil has called for a major revamp of the European Union’s economic and strategic framework, emphasizing a “Buy European” approach and the creation of a unified defense market. Speaking at the Hertie School in Berlin, Klingbeil outlined a six-point plan aimed at enhancing cross-border infrastructure, energy networks, research, and external border security.
Klingbeil stressed the urgency of sourcing critical components, such as advanced semiconductors, within Europe to reduce dependence on non-EU suppliers. He also proposed the establishment of a single European defense market to streamline joint armament projects, improve interoperability among EU member states, and strengthen the bloc’s collective security.
The Finance Minister further highlighted the importance of rapid trade agreements with strategic partners like India and the South American Mercosur bloc, aiming to diversify Europe’s economic partnerships in response to protectionist policies from the United States. He advocated for a “Savings and Investment Union” to mobilize private capital, support startups and scale-ups, and foster innovation across the EU.
Klingbeil criticized the fragmented implementation of EU single market rules at the national level, citing increased bureaucracy and obstacles to labor mobility. He called for better mutual recognition of professional qualifications and stressed the need to overcome “small-state particularism” that hinders investment and economic cohesion.
Under Chancellor Friedrich Merz, Germany, Europe’s largest economy, seeks a stronger leadership role within the EU, particularly as geopolitical tensions persist with a less transatlantic-aligned United States and the ongoing conflict in Ukraine. Klingbeil’s proposals reflect a vision of a more resilient, self-reliant, and strategically unified European Union capable of navigating global economic and security challenges.