Moritz Schularick, the head of the Institute for the World Economy (IfW), is advocating for increased pressure on Russia, Greek shipowners, and Huawei. In a recent interview, he highlighted the most significant competitive disadvantages faced by Germany and proposed specific measures to address them.
Schularick emphasizes the need to exert more pressure on Russia due to its geopolitical activities that pose challenges to Germany and its European neighbors. He points out that Russia’s annexation of Crimea and its involvement in conflicts such as Ukraine have created an unstable environment that undermines economic cooperation and hampers German businesses. Schularick suggests that Germany should work closely with its European partners to apply diplomatic and economic pressure on Russia, encouraging it to change its behavior and adhere to international norms.
Another area of concern for Schularick is the dominance of Greek shipowners in the maritime industry. He argues that they enjoy unfair advantages through favorable tax regimes and lax regulations, which undermine fair competition for German shipping companies. To counteract this, Schularick proposes stricter regulations and harmonization of taxation policies across the European Union. By creating a level playing field, Germany can enhance its position in the global shipping market and bolster its competitiveness.
Furthermore, Schularick raises concerns about the Chinese tech giant Huawei. He asserts that Huawei’s presence in Germany poses significant risks to national security and compromises the country’s technological sovereignty. Schularick advocates for stronger scrutiny and regulation of Huawei’s activities, including limiting its access to critical infrastructure and ensuring robust cybersecurity measures. By taking decisive action in this regard, Germany can safeguard its own interests and protect sensitive information from potential threats.
In addressing these challenges, Schularick offers concrete measures that Germany can undertake. He suggests strengthening alliances with like-minded countries that share similar concerns regarding Russia’s behavior, thereby increasing collective leverage. Additionally, Schularick recommends promoting research and development initiatives to nurture domestic technological capabilities and reduce reliance on foreign companies like Huawei. Investing in education and fostering a skilled workforce is also crucial to enhancing Germany’s overall competitiveness.
Overall, Schularick’s call for more pressure on Russia, Greek shipowners, and Huawei reflects his concerns about the competitive disadvantages faced by Germany. By advocating for specific measures such as diplomatic pressure, regulatory reforms, and strategic investments, he seeks to address these challenges and bolster Germany’s position on the global stage. It remains to be seen how policymakers will respond to these recommendations and whether they will pursue them to enhance Germany’s competitiveness effectively.
