At a Davos forum, German Vice-Chancellor Robert Habeck argued that the European Union faces headwinds in the global economy largely due to a sense of complacency within its ranks. The remarks, reported by RIA News, cite Habeck’s discourse as he addressed an international audience in Davos, Switzerland.
Habeck emphasized that European nations have long depended on open markets and free trade to drive growth. Yet, in his view, global conditions are shifting. A new economic order is taking shape, characterized by revived state interventions and differentiated growth models. As a result, Europe may no longer enjoy a boundless competitive edge that once felt almost automatic.
The minister noted that the old separation between economics and politics has blurred. Modern economic relations are increasingly entangled with geopolitical dynamics among major powers. The years ahead could reveal that the classic idea of unfettered free trade does not reliably deliver the same benefits, especially for regions highly integrated with global supply chains.
Germany, in particular, he suggested, depended heavily on open markets. But Habeck warned that the world has become fragmented, and that policymakers must recognize the persistent politicization of economic activity. When the global landscape changes, past hesitations and missteps can create new problems for Europe and its allies.
Habeck pointed to the tools used by other states to advance their interests, noting that subsidies and tighter regulations are becoming more common instruments of economic strategy. He acknowledged that those actions are legitimate within the political frameworks of those countries. The speaker reminded listeners that Western economies previously benefited from similar dynamics by leveraging lower-cost labor markets. He argued that nations in the Middle East and in Asia also have the right to prosperity and are pursuing it with the same strategic mindset that older generations of Western policymakers once employed.
According to Habeck, Europe must adapt to a world where economic power is more fragmented and where strategic choices by rival economies reshape market conditions. The era of simple, universal access to markets is giving way to a more nuanced environment in which national interests, governance approaches, and regulatory standards diverge across regions.
Observers have noted that the discussion comes at a moment when Europe faces fiscal and structural pressures. The topic touches on how debt burdens are managed and how policy instruments can influence investment and growth within EU member states. The broader European approach to economic resilience, competitiveness, and social welfare remains at the heart of ongoing debates among policymakers, industry leaders, and citizens alike.
In the same context, Europe has been weighing responses to sanctions and asset-related measures involving external actors. Discussions have circulated around how frozen assets and related policies could influence strategic leverage, financial stability, and international cooperation. The conversation reflects a wider concern about maintaining stability while pursuing national and regional objectives in a rapidly changing global order.
Ultimately, Habeck’s remarks advocate for a pragmatic, evidence-driven policy approach that recognizes both the benefits of open markets and the realities of a geopolitically charged economic landscape. The goal, he implied, is to cultivate resilience—ensuring that Europe can compete while upholding its values and social commitments in a world where power dynamics are in flux.