The international economic order is facing a profound transformation, according to German Minister for Economic Affairs, Katarina Reiche. In a commentary published in the German business newspaper “Handelsblatt”, Reiche cautions against a fundamentally restructured global economy, suggesting the current form of globalization is nearing its conclusion.
“We are in the midst of a completely altered geopolitical and geo-economic configuration” Reiche wrote. She observes a shift away from consensus and increasing distrust in multilateral institutions, attributes partly to long-overdue reforms.
Reiche describes a paradigm shift, highlighting the rise of protectionism combined with nationalism. She notes that this trend is creating a world where states are increasingly utilizing monopolies and raw materials as tools of political leverage. This presents significant challenges for Germany, whose economic success has historically been underpinned by rules-based trade and international institutions.
Drawing an analogy to the sporting world, Reiche stated, “Were we in sport, I would say: We are world champions in a discipline that no longer exists”. She implies that past achievements and established strategies are diminishingly relevant in the evolving global landscape.
