Loyalty to US vs pursuit of strategic autonomy: Where will Europe head? Global Insights.

February 27, 2025. Loyalty to US vs pursuit of strategic autonomy: Where will Europe head? Published in Global Times, February 27, 2025, p. 6. LINK. With statement of Klaus F. Zimmermann. PDF of article.

Editor’s Note:

It is evident that Europe’s relationship with the US is undergoing a significant transformation. The continent now faces the challenge of navigating its alliance with a US that is once again prioritizing an “America First” approach while exploring possibilities and ways to strengthen “strategic autonomy.” How will the transatlantic relationship evolve and what are Europe’s choices in seeking “strategic autonomy”? The Global Times consulted four European scholars to gather their perspectives.

Klaus F. Zimmermann, a professor at the Free University of Berlin and the president of Global Labor Organization

The transatlantic relationship between the US and Europe is facing significant strain due to shifts in US geopolitical priorities, global positioning and policymaking style. The new US administration’s approach, which emphasizes “America First,” is perceived as both isolationist and assertively expansionist. Some of the early actions from the new administration have caused international concern. Additionally, US demands for exclusive access to Ukraine’s natural resources and undiplomatic comments about European political developments, particularly regarding Germany, have exacerbated tensions.

This shift has led to major disagreements between the US and Europe over economic policy, climate change, democratic values and how to deal with the Ukraine conflict. Europe’s internal divisions and the unpredictability of American actions are making it difficult to reach a new balance in transatlantic relations. One particularly contentious issue is the tariffs on European goods imposed by the US administration. The president views tariffs as essential to national prosperity and a tool for international influence. While this economic strategy is widely criticized, it poses a direct threat to Europe’s trade-dependent economies and also affects China. In response, Europe is expected to take countermeasures. The debate largely overlooks the fact that while the US has a trade deficit with Europe in goods, Europe has a trade deficit with the US in services.

With the US and Russia moving closer, doubts are growing about the US commitment to NATO and there are fears that an unstable cease-fire could be imposed on Ukraine. Europe will therefore soon be massively building up its military in order to take the necessary independent position.

As a result, Europe is likely to pursue greater independence in economic, military and foreign policy matters. The continent is still the largest internal market in the world after China. Strengthening China-Europe ties may again become a strategic priority as Europe seeks to hedge long-term risks. Discussions about decoupling from China are expected to dissipate, presenting China with an opportunity to enhance its standing and influence within Europe.

See for the other 3 views LINK.

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IZA in Bonn is closing down by December 31, 2025! Some remarks.

What is IZA? Some information: LINK

The German Post Foundation has just announced the decision to close down the research institute IZA in Bonn on December 31, 2025. See the details below.

“No one with some insight into the context can be surprised by this sad development. The decision to close the IZA is the consequence of a series of poor business decisions over the last decade regarding direction, personnel, and content, for which the German Post Foundation bears central responsibility.

Before that, the institute had risen over two decades to become the world’s leading institution for labor and population economics. Influential, leading, and globally networked with significant impact on national and international policymaking, especially on issues of labor market reform and migration.

Not only Bonn, but the whole of Germany and Europe are losing a prominent flagship far beyond the world of science. This is particularly painful in view of the ongoing deglobalization of the world.”

Klaus F. Zimmermann

(Translation of German source text, see below).

*****

“Niemand mit etwas Einsicht in die Zusammenhänge kann von dieser traurigen Entwicklung überrascht sein. Die Entscheidung, das IZA zu schließen, ist die Konsequenz einer Reihe von unternehmerischen Fehlentscheidungen des letzten Jahrzehnts über Ausrichtung, Personal und Inhalte, für die die Poststiftung die zentrale Verantwortung trägt.

Zuvor war das Institut über zwei Jahrzehnte zur weltweit führenden Institution der Arbeits- und Bevölkerungsökonomie aufgestiegen. Einflussreich, tonangebend und weltweit vernetzt mit auch großem Einfluss auf die nationale und internationale Politik, insbesondere bei Fragen der Arbeitsmarktreformen und der Migration.

Nicht nur Bonn, ganz Deutschland und Europa verliert ein prominentes Aushängeschild weit über die Wissenschaft hinaus. Dies ist angesichts der fortschreitenden Deglobalisierung der Welt besonders schmerzlich.”

Klaus F. Zimmermann

(zitiert in Kai Pfundt, “Aus für Bonner Forschungsinstitut. Post Stiftung will sich neu aufstellen und das Institut zur Zukunft der Arbeit abwickeln. Neuer Fokus auf Umweltprojekte”, General-Anzeiger. Unabhängige Tageszeitung, Ausgabe Mittwoch, 26. Februar 2025, S. 7.)

German Post Foundation (Deutsche Post Stiftung, DPS) Messages

Strategic Realignment of the Deutsche Post Stiftung: Prioritizing Climate and Sustainability

Following the end of funding from DHL Group (formerly Deutsche Post AG), the Deutsche Post Stiftung (DPS) is undergoing a strategic realignment. Under its new name, Stiftung Globale Nachhaltigkeit (SGN), it will focus on climate, nature, and sustainability issues.

As part of this transition, DPS will become a grant-making foundation, supporting external projects and organizations through the Stiftungsfonds Umweltökonomie und Nachhaltigkeit (SUN). This means it will no longer operate its own research institutes. In this context, DPS has made the difficult decision to discontinue operations at the Forschungsinstitut zur Zukunft der Arbeit (IZA) as of December 31, 2025.

At the same time, DPS recognizes the importance of the international IZA research network, which has established itself as a leading and highly respected global hub for labor market research. To preserve this legacy, efforts are underway to explore alternative funding sources, partnerships, and organizational models for the network. The IZA Network Advisory Panel, who were not part of the decision, will be asked to assist in this. The goal is to present the results in June 2025.

DPS fully recognizes the uncertainty this transition creates for all employees at the Bonn-based institute. Individual agreements will be developed to avoid compulsory redundancies and to help minimize the impact on employees’ careers and livelihoods.

The foundation expresses its deep appreciation for the exceptional dedication of all researchers and staff who have shaped IZA over the years. Their work has not only advanced research and international collaboration in labor economics but has also provided valuable contributions to labor market and social policy debates worldwide. Looking back on more than 25 years of achievements supported by the private funding and general leadership of DPS, we are incredibly proud of what has been accomplished. As we move forward, we are committed to supporting efforts to ensure that the spirit and impact of this research community continues into the future.

The President and the Board of Trustees

*****

“Date: Mon, Feb 24, 2025 at 4:33 PM
Subject: Strategic Shift at DPS: Implications for IZA’s Future

Dear IZA Network Members,

We wish we had different news to share, but we must inform you of major changes affecting IZA’s future.

As you may recall, changes in the funding structure of the Deutsche Post Foundation (DPS) led to significant adjustments last year. Since then, various paths have been explored to ensure the long-term sustainability of IZA.

The DPS Board of Trustees has now concluded that maintaining a full-scale research institute—with high academic standards, a strong in-house team, and a vibrant program of events and initiatives—is not financially viable in the long term with the available funds.

As a result, DPS announced today the difficult decision to close the Forschungsinstitut zur Zukunft der Arbeit (IZA) as of December 31, 2025. This decision is part of a broader strategic shift, as the foundation consolidates its funding activities and transitions fully toward its focus on climate, nature, and sustainability. For further details on the reorganization and renaming of the foundation, please refer to the official DPS Statement by the President and the Board of Trustees.

This decision has the greatest immediate impact on our local team in Bonn. IZA management is fully committed to supporting each employee through this transition, working on individual solutions to help minimize the impact on their careers and livelihoods.

At the same time, this shift has implications for the global IZA research community. DPS has acknowledged the network’s significance and the vital role it has played in advancing labor economics. To preserve this legacy, efforts are underway to explore ways to continue or adapt the network’s activities through alternative funding and partnerships. The IZA Network Advisory Panel, who were not part of the decision, will be asked to assist in this. The goal is to present results in June 2025.

For now, we hope all IZA activities planned for this year will proceed as scheduled. The IZA Discussion Paper series will also continue, ensuring the ongoing dissemination of high-quality research.

We know this transition is unsettling for all of us, and we understand that it raises many questions and concerns. While we continue to work through the details, we appreciate your patience and understanding during this period. We will keep you informed and share updates as soon as they become available.

Finally, we want to express our deepest gratitude to everyone who has contributed to IZA’s success over the years. Your dedication, expertise, and collaboration have been the foundation of everything we have achieved.

Thank you for being an integral part of the IZA community. Together, we hope to preserve the spirit and contributions of the IZA network as we adapt to these changes.

With best regards,
Mark Fallak

(on behalf of the Deutsche Post Foundation)
— 
Mark Fallak
Head of Communications
IZA – Institute of Labor Economics”

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Germany Decides, Europe Reacts. How the German elections affect EU governance. Online Panel Discussion on February 27, 2025, 3:00-5:00 CET (Paris)

Join an engaging and insightful discussion on how the German elections will shape the future of EU governance. Our panel of distinguished experts will explore the impact of the election results on Germany’s party system, European integration & governance, security policies, and democratic stability.

February 27, 2025, 3:00-5:00 CET (Paris)

To follow the webinar:
https://www.sciencespo-grenoble.fr/germany-decides-europe-reacts

Panelists:

  • Prof. Dr. Klaus F. Zimmermann – President of the Global Labor Organization, Co-Director of the Centre for Population, Development and Labour Economics at United Nations University Maastricht Economic and Social Research Institute on Innovation and Technology and Free University Berlin
  • Prof. Dr. Frank Schimmelfennig – Professor of European Politics at ETH Zurich and Member of the Center for Comparative and International Studies at ETH Zurich
  • Prof. Dr. Tanja A. Börzel  Professor of Political Science and Director of the Center for European Integration at the Free University of Berlin
  • Dr. Nicolai von Ondarza – Head of Research Division at the German Institute for International and Security Affairs (SWP)
  • Prof. Dr. Emiliano Grossmann – Professor at Science Po Paris and Director of the Centre for European Studies and Comparative Politics

Related to the intervention of Klaus F. Zimmermann

Opinion piece:

Klaus F. Zimmermann. Leading migration policy out of the dead end. Global insights – an opinion.

Posted in Events, Media, News | Comments Off on Germany Decides, Europe Reacts. How the German elections affect EU governance. Online Panel Discussion on February 27, 2025, 3:00-5:00 CET (Paris)

Leading migration policy out of the dead end. Global insights – an opinion.

The “immigration question” was a central topic in Germany’s 2025 federal election campaign. On February 23, 2025, the parliament was re-elected. The country is now confronted with many promises, some of which are based on misjudgments. Forming a government and defining its policy objectives will take some time. How do we get out of this dead end? Can Germany do it alone? Every new government should “simply do a good job, focus on what works”! What are the promising approaches?

  • Refrain from making unrealistic promises.
  • Allow flexible international labor and training migration.
  • Ensure a consistent and significant acceleration of asylum procedures and grant work permits to all asylum seekers as early as possible.
  • Stop illegal asylum seekers at Europe’s external borders and through agreements with key sending or transit countries.
  • Those who have integrated economically and socially must be allowed to stay.
  • Europe is needed.

Grandiose promises and political disenchantment

Julie Ricard on unsplash
Julie Ricard on Unsplash

Migration policy is always a fertile ground for grandiose promises. Statements like “the borders will be closed,” “all refugees will be sent home,” or “all new asylum cases will be stopped” are made. However, a sober fact-check reveals that such reactions are reckless, premature, or even harmful to one’s own interests. The short-term gut feeling of an apparent solution eventually gives way to the realization that, in the long run, nothing has actually changed.

The inevitable result is frustration and disenchantment with politics. Over the years, German citizens have watched this political theater unfold over and over again. The discussions about the reactions of Germans to the recent political changes in Syria, for example, or about the context of the terrible acts of violence committed by people with a refugee background sadly provide ample examples. Policymakers should not rely on voters’ short memory.

The immigration question is complex, as humanitarian concerns intertwine with economic interests. Without a compass, one quickly ends up in a dead end. Those who need skilled workers cannot afford to alienate entire ethnic groups. Those who indiscriminately deport people risk their own prosperity, as economic consequences such as labor shortages and rising prices inevitably follow large-scale deportations. A nation that betrays its values and interests will not be able to withstand global challenges in the long run.

Thus, the desire to pursue the right policies without being distracted is certainly a sensible approach. Provided it is the right policy and not just a populist reflex designed to oust unwelcome political competition and secure the next election. Good policy provides lasting solutions. Politics driven by rhetoric rather than reason ultimately leads only to voter dissatisfaction.

The challenges of migration policy

Germany needs workers—both skilled and unskilled—not only in the healthcare sector, the hotel and hospitality industry, and technical professions. However, our country is not considered particularly attractive, not even for students or apprentices at our tuition-free universities or in our highly praised vocational training system. But skilled workers who are trained domestically and stay permanently are not only adequately qualified but have also established themselves through language skills and cultural integration.

The formal obstacles to entering Germany as a migrant worker have been significantly reduced over the years. German migration policy has contributed to this. Nevertheless, there are still not enough people entering the German labor market. This has consequences for growth and prosperity. Germany’s poor image as a country of immigration is partly responsible for this, as is the regular behavior of migrant workers, which involves voluntary emigration as well as immigration. The majority of labor market-oriented immigrants leave Germany again. Integration policies must be implemented to ensure that they stay. Because what is at stake is the prosperity and welfare of the entire population living in Germany.

Wrong signals in refugee policy can undermine these efforts. The broader societal debate on immigration affects all immigrant groups. It is not surprising that refugees generally integrate into the labor market more slowly. However, they do integrate—especially when access to the labor market is granted quickly after applying for asylum and when qualification and integration programs are available. In recent years, aside from Ukraine, Syria has been the most significant country of origin for refugees coming to Germany.

The reality is: Without immigration, Germany (and Europe) will age and shrink, while the working-age population in Africa and Asia is set to increase dramatically over the coming decades. At the same time, conflicts and tensions in these regions will also escalate. Given the enormous labor force growth in Africa and Asia, Europe has to expect significantly greater migration pressures—both economic and refugee-driven—over the forthcoming decades.

New priorities in migration policy

Yes, a radical shift in migration policy is necessary. However, the current debate has maneuvered itself into a dead end. Germany cannot realistically protect its external borders against illegal immigration permanently. Asylum seekers are registered—meaning they are irregular, but they are not illegal. The real threat arises when migrants go underground illegally.

Nothing works without Europe: Those who advocate for permanent border controls within Schengen states risk destroying the core of the crucial European integration. Europe must be made migration-proof for the future. European solidarity should focus on establishing and expanding European immigration centers at the EU’s external borders, where asylum procedures should be concluded promptly.

However, Germany will continue to call for a fair distribution of recognized refugees among the member states. To this end, the capacities for the necessary efforts to teach language skills, European values and a rapid integration into the labor market must be made available on a permanent basis.

To meet labor demands essential for economic prosperity and to effectively control illegal migration pressure, an efficient, hybrid agreement system is needed with key sending and transit countries in the Mediterranean region, Asia, and Africa. This involves the contractual safeguarding of a circular labor migration system as well as the prevention of illegal migration and the readmission of rejected asylum seekers. Germany will also need European cooperation to implement such a system successfully.

Klaus F. Zimmermann

REFERENCES

Featured image above: Julie Ricard on Unsplash – rTXKkhHgoVM

  • Zimmermann, Klaus F. (2025). Migrationspolitik aus der Sackgasse führen. Opinion Piece in Wirtschaftliche Freiheit. Das ordnungspolitische Journal published on 29 January 2025. LINK
  • Zimmermann, Klaus F. (2017). Refugee and Migrant Labor Market Integration: Europe in Need of a New Policy Agenda in: Bauböck, R. and Tripkovic, M.,  The Integration of Migrants and Refugees.  An EUI Forum on Migration, Citizenship and Demography, European University Institute, Robert Schuman Centre for Advanced Studies, Florence 2017, pp. 88 – 100.

FURTHER REFERENCES:

Posted in Global Insights, Media, News | Comments Off on Leading migration policy out of the dead end. Global insights – an opinion.

Migrationspolitik aus der Sackgasse führen. Global Insights – eine Meinung.

Die “Zuwanderungsfrage” war ein zentrales Thema des Bundestagswahlkampfes in Deutschland. Am 23. 2. 2025 wird das Parlament neu gewählt. Das Land wird mit vielen Versprechungen konfrontiert, die teilweise auf Fehleinschätzungen beruhen. Regierungsbildung und Programmatik werden etwas Zeit brauchen. Wie kommen wir aus der Sackgasse? Kann das Deutschland alleine machen? Jede neue Regierung sollte “einfach nur einen guten Job machen”! Wo sind die vielversprechenden Ansätze?

  • Unerfüllbare Versprechen unterlassen.
  • Flexible internationale Arbeits- und Ausbildungsmigration zulassen.
  • Konsequente, erhebliche Beschleunigung der Asylverfahren und möglichst frühzeitige Arbeitserlaubnis für alle Asylbewerber.
  • Illegale Asylbewerber an den europäischen Außengrenzen und durch Verträge mit zentralen Sende- oder Durchwanderungsländern stoppen.
  • Wer sich wirtschaftlich und sozial integriert, muss bleiben können.
  • Europa wird gebraucht.

Vollmundige Versprechen und Politikverdrossenheit

Julie Ricard on unsplash
Julie Ricard on Unsplash

Die Migrationspolitik ist allemal für vollmundige Versprechen gut. Da werden “die Grenzen geschlossen”, “alle Flüchtlinge nach Hause geschickt” oder “alle neuen Asylverfahren gestoppt”. Nach einem nüchternen Faktencheck erweisen sich solche Reaktionen als leichtfertig, voreilig oder für die eigenen Interessen als schädlich. Das kurzfristige Bauchgefühl einer scheinbaren Problemlösung weicht langfristig der Erkenntnis, dass sich nichts tatsächlich bewegt.

Dann ist Frustration und Politikverdrossenheit die unvermeidbare Folge. Über die Jahre haben die Bürgerinnen und Bürger in Deutschland dieses Politiktheater wieder und wieder verfolgt. Die Diskussionen etwa über die deutsche Reaktion auf die kürzlichen politischen Veränderungen in Syrien oder die Zusammenhänge der schrecklichen Gewalttaten von Menschen mit Fluchthintergrund bieten leider vielfältiges Anschauungsmaterial. Die etablierten Parteien sollten sich nicht auf die Vergesslichkeit der Wähler verlassen.

Die Zuwanderungsfrage ist vielschichtig, da sich humanitäre Fragen mit ökonomischen Interessen verwickeln. Ohne Kompass landet man schnell in einer Sackgasse. Wer Fachkräfte braucht, kann nicht ganze ethnische Gruppen vergraulen. Wer Menschen wahllos ausweisen will, bedroht den eigenen Wohlstand durch die wirtschaftliche Nachteile, wie Versorgungsmängel und steigende Preise, die breite Deportationen unvermeidbar verursachen. Wer seine Werte und seine Interessen verrät, kann langfristig angesichts der globalen Herausforderungen als Nation nicht bestehen.

So ist der Wunsch, die richtige Politik zu machen, und sich nicht dabei ablenken zu lassen, sicher ein richtiger Ansatz. Wenn es denn die richtige Politik ist, und nicht nur ein populistischer Reflex, der die unliebsame politische Konkurrenz verdrängen und die nächste Wahl sichern soll. Eine gute Politik löst das Problem nachhaltig. Politik mit dem Kehlkopf statt mit dem Kopf schafft auf Dauer nur Wählerverdruss.

Die Herausforderungen in der Migrationsfrage

Deutschland braucht Arbeitskräfte, qualifizierte wie weniger qualifizierte. Und das nicht nur für den Gesundheitssektor, dem Hotel- und Gastgewerbe sowie bei den technischen Berufen. Unser Land gilt nicht als besonders attraktiv, nicht einmal für Studierende oder Auszubildende an unseren kostenfreien Universitäten und bei der hochgelobten Lehrlingsausbildung. Fachkräfte, die man selbst ausbildet und die dauerhaft bleiben, sind nicht nur angemessen qualifiziert, sie haben sich auch mit Sprachkenntnissen und kultureller Integration etabliert.

Die formalen Hindernisse als Arbeitsmigrant nach Deutschland einzureisen haben sich über die Jahre erheblich reduziert. Dazu hat deutsche Migrationspolitik beigetragen. Trotzdem kommen immer noch nicht genügend Menschen in den deutschen Arbeitsmarkt. Das hat Konsequenzen für Wachstum und Wohlstand. Mitverantwortlich ist das schlechte Image Deutschlands als Einwanderungsland, aber auch ein reguläres Verhalten von Arbeitsmigranten, das neben Zuwanderung eben auch freiwillige Abwanderungen kennt. Ein Großteil arbeitsmarktorientierter Zuwanderer verlässt Deutschland wieder. Um ihr Bleiben muss durch Integrationspolitik gerungen werden. Denn was auf dem Spiel steht ist der Wohlstand und die Versorgung der ganzen in Deutschland lebenden Bevölkerung.

Falsche Signale in der Flüchtlingspolitik können solche Anstrengungen zunichtemachen. Die generelle gesellschaftspolitische Debatte über Zuwanderung erreicht alle Zuwanderungsgruppen. Es ist nicht überraschend, dass sich Flüchtlinge in aller Regel langsamer in den Arbeitsmarkt integrieren. Aber sie tun es, wenn der Arbeitsmarktzugang nach der Asylbewerbung rasch ermöglicht wird und Qualifizierungs- und Integrationsangebote vorhanden sind. Neben der Ukraine war Syrien in den vergangenen Jahren das wichtigste Ursprungsland der Fluchtbewegung nach Deutschland.

Die Realitäten sind: Deutschland (und Europa) altert und schrumpft ohne Zuwanderung, wohingegen die Arbeitsbevölkerung in Afrika und Asien in den nächsten Jahrzehnten massiv weiter ansteigt. Gleichzeitig werden auch die konfliktären Spannungen in diesen geographischen Regionen zunehmen. Es ist wegen des enormen Wachstums der Arbeitskräftepotenziale in Afrika und Asien in den nächsten Jahrzehnten mit einem erheblich größeren Zuwanderungsdruck wirtschaftlicher und fluchtbedingter Art zu rechnen, der allerdings auf ganz Europa lastet.

Neue Prioritäten in der Migrationspolitik

Ja, eine radikale Umkehr in der Migrationspolitik ist nötig. Die gegenwärtige Debatte hat sich allerdings in eine Sachgasse manövriert. Deutschland kann seine Außengrenzen praktisch nicht dauerhaft gegen illegale Zuwanderung schützen. Asylbewerber sind registriert, also irregulär aber nicht illegal. Die richtige Bedrohung entsteht, wenn Zuwanderer illegal in den Untergrund gehen.

Ohne Europa geht nichts: Wer dauerhafte Grenzkontrollen innerhalb der Schengen-Staaten einrichten will, der zerstört den Kern der so wichtigen europäischen Integration. Europa muss migrationspolitisch zukunftssicher gestaltet werden. Europäische Solidarität sollte sich dabei auf die Einrichtung und den Ausbau europäischer Zuwanderungszentren an den europäischen Außengrenzen konzentrieren, in denen zeitnah abschließende Verfahren durchgeführt werden.

Eine faire Verteilung anerkannter Flüchtlinge auf die Mitgliedsstaaten wird Deutschland allerdings weiter fordern. Dafür müssen die Kapazitäten für die notwendigen Anstrengungen zur Vermittlung von Sprachkenntnissen, europäischer Werte und zu einer raschen Integration in den Arbeitsmarkt dauerhaft bereitgestellt werden.

Für die Bewältigung der Arbeitskräftebedarfe zur Sicherung des Wohlstands sowie die effektive Kontrolle des illegalen Zuwanderungsdrucks bedarf es ferner ein effektives, hybrides Vertragssystem mit den wichtigsten Sende –  und Transferländern im Mittelmeerraum, in Asien und Afrika. Dabei geht es um die vertragliche Absicherung zirkulärer Arbeitsmigration genauso wie die Verhinderung illegaler Wanderungen und die Rücknahme Zurückgewiesener. Auch für ein solches Vertragssystem braucht Deutschland die europäische Kooperation.

Klaus F. Zimmermann

REFERENCES

Featured image above: Julie Ricard on Unsplash – rTXKkhHgoVM

  • Zimmermann, Klaus F. (2025). Migrationspolitik aus der Sackgasse führen. Opinion Piece in Wirtschaftliche Freiheit. Das ordnungspolitische Journal published on 29 January 2025. LINK
  • Zimmermann, Klaus F. (2017). Refugee and Migrant Labor Market Integration: Europe in Need of a New Policy Agenda in: Bauböck, R. and Tripkovic, M.,  The Integration of Migrants and Refugees.  An EUI Forum on Migration, Citizenship and Demography, European University Institute, Robert Schuman Centre for Advanced Studies, Florence 2017, pp. 88 – 100.

FURTHER REFERENCES:

Posted in Global Insights, Media, News | Comments Off on Migrationspolitik aus der Sackgasse führen. Global Insights – eine Meinung.

Global Insights: Another global trade war in 2025?

Another global trade war in 2025? By Klaus F. Zimmermann

Flourishing trade relationships between countries are crucial to the international division of labor and welfare. With forthcoming political changes in the United State and Europe, the trade disputes between China, the US and the European Union may become a closely watched global issue.

But will this conflict culminate in another global trade war by 2025, potentially triggering a major economic crisis? Or can a balance between cooperation and confrontation be achieved?

Recent political shifts in the US and the EU, particularly in Italy, France and Germany, have rendered the “Western” world more conservative, nationalistic, and less focused on globalization. Political agendas are overshadowing economic logic. Consequently, China is frequently viewed as a trade powerhouse endangering economic well-being. Incoming US president Donald Trump has proposed significant tariffs on Chinese and EU imports to reduce US trade deficits with these economies.

The EU is urged to increase its oil and gas imports from the US. Regarding China, targeted industries encompass those vital to national security, such as semiconductors, rare earth minerals, and pharmaceuticals, with additional measures controlling sensitive technologies, including artificial intelligence and quantum computing.

Revoking China’s “most favored nation” status in the US, termed Permanent Normal Trade Relations, could be a significant initial move.

Trade disputes between China and the EU are mainly focused on the electric vehicle sector, with Europe, particularly Germany, losing its dominance in the car industry. The EU accuses China of unfair trade practices, including company subsidies.

Latin America is another area of trade competition and dispute. The EU-Mercosur treaty, signed by EU Commission president Ursula von der Leyen in early December, is a major trade agreement involving the EU and Mercosur countries (Argentina, Brazil, Paraguay and Uruguay). This treaty aims to reduce tariffs and trade barriers, anticipating welfare gains for both regions.

China has funded a new deep-water port in Chancay, Peru, under its Belt and Road Initiative. Inaugurated in the presence of President Xi Jinping, this port is expected to significantly boost trade between South America and Asia, while also facilitating trade into South America.

As for Trump, he has warned Panama that the Panama Canal, a crucial route for global sea freight, should not fall into the “wrong hands”.  Additionally, the US is displeased with the Mercosur agreement, as it intensifies competition with the EU.

Anticipating trade conflicts in 2025, China aims to boost domestic demand and industrial upgrading while avoiding structural reforms to mitigate new economic risks while EU might counter US tariffs by diversifying energy sources, increasing tariffs on US goods and services (such as the Digital Service Tax on imported software services), and pursuing trade partners in regions like Mercosur, Africa, and the “Indo-Pacific. EU countries need to swiftly ratify the Mercosur treaty, though internal criticism persists as Spain, Germany, and the Netherlands stand to benefit more than France and Belgium.

Investing in negotiations to minimize or avoid trade war damages is beneficial for global welfare. Respecting national cultures, strategies, and borders is essential to prevent political dominance and achieve these gains. Balancing security and economic policy objectives has grown increasingly important. Failing this, greater autonomy, diversified supply chains, and a focus on trading with allied nations would be the only alternative. With this common understanding, a global agreement among major trade players appears feasible.

Why is such a deal profitable? Tariffs and trade barriers raise prices for consumer and investment goods in countries implementing these policies, leading to inflation, unemployment, and a lower standard of living in the US or Europe. Additionally, these measures impact European and American businesses operating from China or Europe.

Trade wars can harm beyond trade by diminishing investor confidence, increasing economic uncertainty, and hindering the exchange of ideas, skilled labor, and technology, as well as hindering climate change mitigation and efforts towards a sustainable global economy.

Current public debates on trade policy may mark the start of negotiations seeking a viable compromise to avert harmful trade wars. The willingness to engage in trade wars, if required, can serve as a deterrent.

The author is a professor at the Free University of Berlin and the president of the Global Labor Organization, a Germany-based world-wide network of researchers investigating the path of globalization.

A shorter version of this post was published as Will there be another global trade war in 2025? in China Daily, December 30, 2024, P. 9, in the section “China and the World Roundtable – 2025 Outlook. The five critical questions for 2025”.
Published online & print PDF version.
Prepublication PDF (Global Insights: Another global trade war in 2025? Longer & more complete)

Posted in Global Insights, News | Comments Off on Global Insights: Another global trade war in 2025?

Happy Holidays 2024 & Season’s Greetings!

Happy Holidays & Season’s Greetings to all friends and followers.
Klaus F. Zimmermann

Posted in Events, News | Comments Off on Happy Holidays 2024 & Season’s Greetings!

The Factors That Reduce Fertility and The Policies that Enhance it

The kick-off conference “The Factors That Reduce Fertility and The Policies that Enhance it” of the Family, Fertility and Human Development Initiative on December 19-20, 2024 at the Corvinus University of Budapest aimed to convene leading scholars and analysts from around the world to discuss the causes and consequences of fertility decline using data analyses to identify differences in fertility by socioeconomic status, religion, and culture.

Program of the conference.

Klaus F. Zimmermann, Editor-in-Chief of the Journal of Population Economics and President of the Global Labor Organization (GLO) attended the conference as a discussant and member of the research group.

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Migration: Konferenz der Leopoldina in Halle (Saale) am 27. – 29. November 2024

Die Leopoldina, Nationale Akademie der Wissenschaften Deutschlands, veranstaltet am 27. – 29. November 2024 in Halle (Saale) eine öffentliche Fachveranstaltung zum Thema Migration, bei dem Herausforderungen und Chancen von Wanderungen diskutiert werden.

Link zum Program

Klaus F. Zimmermann ist Mitorganisator der Veranstaltung, Podiumsteilnehmer des Panels “Einwanderung – Herausforderungen und Chancen” und hält einen Vortrag zu “Flucht und Arbeit: Vom Mythos zur Wirklichkeit”. Er ist Senator der Leopoldina und Obmann (Chair) der Sektion 25 “Ökonomik und Empirische Sozialwissenschaften”.

Zimmermann ist ferner emeritierter Professor der Universität Bonn, aktiver Honorarprofessor der Freien Universität Berlin und der Maastricht University sowie Professorial Fellow von UNU-MERIT, Maastricht. Als Präsident der Global Labor Organization (GLO) leitet er ein weltweites Forschernetzwerk mit über 2200 Mitgliedern, das sich auch schwerpunktmäßig mit Flucht, Arbeitsmigration und Arbeitsmärkten beschäftigt. Er ist Herausgeber (Editor-in-Chief) des Journal of Population Economics, des führenden Fachjournals der Bevölkerungsökonomie. Zu Fragen der Migrationspolitik äußert er sich seit über 35 Jahren. 

After the conference in the city center of Halle (Saale).

Hinweise und Links zu Publikationen zum Thema:

Wissenschaftliche Beiträge u.a.: 

Medien u.a:

Programm (LINK)

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Visiting Beijing-China to participate at the Seventh Renmin University of China & GLO Annual Conference 2024

The 7th Renmin University of China, Beijing & GLO Conference 2024 will take place in Beijing on 9-10 November 2024 at Renmin University of China on “Low Fertility and Population Ageing”. The event is jointly organized by the School of Labor and Human Resources at Renmin University of China and the Global Labor Organization and supported by the Journal of Population Economics (JOPE). 

The full program of the meeting is available here: LINK

GLO President Klaus F. Zimmermann is a co-organizer of the event and will present a keynote on on “The Economics of Fertility Revisited”. During his visit of Renmin University next week, he will meet with co-authors, Associate Editors, authors and potential authors of JOPE and will present a review of the German employment situation on November 8 at the Renmin University of China Employment Panel.

Ends;

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