Germany’s Minister for Economic Affairs, Katherina Reiche, has cautioned that the international economic order is undergoing a profound transformation, potentially rendering the current form of globalization obsolete. In a commentary published in the “Handelsblatt” Reiche highlighted a shift towards a fundamentally restructured global economy.
“We are situated within a completely altered geopolitical and geo-economic landscape” she stated. This change is characterized by a move away from consensus-building and a diminishing trust in multilateral institutions, consequences she attributes, in part, to long-overdue reforms.
Reiche describes a paradigm shift occurring, with protectionism and nationalism converging to create a world where states are increasingly utilizing monopolies and raw materials as instruments of political power. Germany, whose economic prosperity has historically been rooted in rule-based trade and international cooperation, now faces significant challenges as a result.
Drawing an analogy, Reiche remarked that were Germany to be assessed within a sporting context, “We would be world champions in a discipline that no longer exists”. She emphasized that past successes are unlikely to translate into continued prosperity under the evolving global environment.