Germany and Europe prepare for Trump’s America

European Council - October 2016. The EU Heads of State or Government met on 20 October 2016 in Brussels. The leaders discussed relations with Russia and the situation in Syria. From left to right: Lars Lokke Rasmussen, Danish Prime Minister, Angela Merkel, German Federal Chancellor, Xavier Bettel, Luxembourg Prime Minister. In the background Teresa May, Prime Minister of Britain is seen. Shoot location: Brussels – Belgium. Shoot date: 20/10/2016. Copyright: European Union.

European Council – October 2016. The EU Heads of State or Government met on 20 October 2016 in Brussels. The leaders discussed relations with Russia and the situation in Syria. From left to right: Lars Lokke Rasmussen, Danish Prime Minister, Angela Merkel, German Federal Chancellor, Xavier Bettel, Luxembourg Prime Minister. In the background Teresa May, Prime Minister of Britain is seen. Shoot location: Brussels – Belgium. Shoot date: 20/10/2016. Copyright: European Union.

Germany, and more generally the EU, is now preparing in earnest to confront the groundbreaking changes in their relations with Trump’s America. Last week, both the German Chancellor Angela Merkel and her Federal minister for Finance Wolfgang Schauble, made direct and indirect statements about the policies now needed for Germany and the European Union. On Thursday 12 January, Merkel quite openly referred to the new strategy needed in EU defense and security, after the US seems to distance itself from Europe. Last Saturday she went even further and ‘advised’ the US to stick to multilateral cooperation and avoid trade protectionism. The risks in this domain grow every day and will culminate after 20 January. Schauble in his turn indirectly said that the European Central Bank should abandon its over-relaxed monetary policy this year. The obvious aim of that is restore the strength of the euro in relation to the dollar. Currently, the exchange rate between the two monies is very close to parity, thus having greatly devalued the dollar value of the German reserves denominated in euro. Let’s check in detail why Germany is alarmed with what is happening on the other side of the Atlantic Ocean. The US upsets Europe For one thing, it’s the changes the new American administration is about to bring in international trade relations. Europe and more precisely, Germany, is a major exporter to the US, in this way supporting employment and welfare at home. The US is the first export market for Germany and the EU. With Transatlantic Trade and Investments Partnership agreement being briefly repudiated by the new American administration, the German and the European exports to the US are now sailing in uncharted waters. More than one Trump team member advising the President elect on trade are against multilateral trade agreements, obviously preferring bilateral negotiations. Britain is the first willing candidate in this respect. Actually, last week, Teresa May the British PM, alarmed the business community of her country and Europe in general by clearly opting for a hard Brexit. She said that Britain will certainly leave the European Union and will not opt to remain in the EU single market. Instead, London will look to strike bilateral trade agreements all over the world. In this perspective, the first choice is of course Washington. Killing the TTIP and the TPP In more detail now, according to Reuters, a Trump adviser said that the Trans- Pacific Partnership on trade and investments, “or a multilateral agreement that looks like TPP but is called something else, is emphatically dead.” The same source said that the new administration will long for bilateral trade agreements abandoning the multilateral pacts. Britain was not mentioned, but the latest comments by May about choosing the hard Brexit option point to the direction of the US. In view of all that, this past week Merkel twice touched upon the issue of the multifaceted transatlantic cooperation. In the first instance, on an official visit to the neighboring Luxembourg last Thursday, she urged the EU member states to boost their defense and security efforts and spending, because the US do not any more guarantee European space. In fact, she said there is no “guarantee of perpetuity” for Europe from the US. Europe to pay more After WWII, the NATO alliance under the US leadership has undertaken such guarantees in relation to conventional forces, while the US offers Europe nuclear coverage, obviously against Russia. Presently, the Europeans are alarmed with Russia, more so after Trump appears ready to cooperate with Moscow. In an interview to the Wall Street Journal he “suggested he would be open to lifting sanctions on Russia”. In the spring of 2014, Russia had blatantly annexed Ukrainian soil, when it occupied the Crimean peninsula. From that day on the EU froze its relations with Moscow, with the Ukrainian question still open and Russia de facto controlling the eastern Russian speaking provinces. No wonder then if Germany feels more vulnerable vis-à-vis Russia in the era of Trump. As for Schauble, his worries are obviously related to the parity between the euro and the dollar. No to forget, that the single European currency has in the past reached unbelievable highs with the dollar at exchange rates reaching 163 American cents. Against that background the present exchange rates oscillate around 106 dollar cents. The less expensive the euro, the lower the dollar value of Germany’s reserves, thus more expensive acquisition of American assets by German companies. The more characteristic example in this line last year was the acquisition of the cutting edge biotechnology company Monsanto by Bayern for $60 billion. Monsanto is the leader in the genetically modified seeds market in key products like soya and maize. One can easily calculate the difference of the cost of this deal in euro terms, if the rate was 1.63 in favor of the euro and not 1.06. Asking for a cheaper dollar However, the new US administration favors more increases of Fed’s basic interest rates, to further suppress the value of the euro versus the dollar. Last Week, Schauble speaking in an interview with the Sueddeutsche Zeitung daily, in order to counter this prospect came out strongly against the currently applied extraordinary monetary measures of the European Central Bank. As a matter of fact, he demanded this policy to be reversed within the year, despite the enormous difficulties of such a task. Obviously, an increase of euro interest rates and the reverse of ECB’s quantitative easing would act as a strong support for the euro in relation to the dollar. If unchanged, the current policies may lead to a full parity between the two moneys in some months, (presently the euro/dollar exchange rate is around 1.06), or even worse for Germany, to the region below the unit. In conclusion, there is no doubt that Germany has in earnest started building its defenses vis-à-vis Trump’s America. Not that Berlin was happy with Barack Obama’s governance, but as it turns out those were the good years. Clearly, the new US administration is preparing to amplify Europe’s problems on two central issues; trade and security.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

Aytac Mammadova is a third-year Public Health student at Azerbaijan Medical University

Inclusive Healthcare: Improving Accessibility and Care for Disabled Patients through Investment and Workforce Innovation

This article was exclusively written for The European Sting by Ms. Sadia Khalid, a Scientist-Physician (MBBS, MD) at Tallinn University of Technologye. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on […]
© UNICEF/Oleksii Filippov Workers secure plywood boards over the shattered windows of a residential building damaged by a missile strike in eastern Ukraine. (file)

Ukraine: UN aid convoy reaches frontlines in Dnipro

This article is published in association with United Nations. A UN humanitarian convoy reached frontline communities in Ukraine’s Dnipro region on Wednesday, delivering critical medical and hygiene supplies as fighting continues to take a heavy toll on civilians and infrastructure across the country. UN Spokesperson Stéphane Dujarric told reporters that access to the town had been […]
© WFP/Maxime Le Lijour A child helps to pitch his family's tent after it collapsed during heavy rain in Gaza.

UN warns civilians remain at risk as airstrikes continue across Gaza

This article is published in association with United Nations. Fresh airstrikes and shelling across the Gaza Strip over the past 24 hours have put civilians at renewed risk and compounded months of hardship, the UN said on Tuesday, warning that humanitarian needs continue to outpace access and capacity. UN Spokesperson Stéphane Dujarric told journalists at the […]
United Nations Palestinian families are being evicted from the Silwan neighborhood in East Jerusalem.

West Bank: New Israeli measures further erode prospects for two-State solution

This article is published in association with United Nations. UN Secretary-General António Guterres voiced grave concern on Monday over the reported decision by the Israeli security cabinet to authorize a series of administrative and enforcement measures in Areas A and B in the occupied West Bank.  The measures would make it easier for Jewish settlers to take over Palestinian […]
© Unsplash/Hosein Charbaghi A view of Tehran, Iran's capital city.

Guterres welcomes resumption of Iran-US talks

This article is published in association with United Nations. UN Secretary-General António Guterres on Friday welcomed the resumption of talks between Iran and the United States.  The development follows weeks of tensions surrounding Iran’s nuclear programme and threats of a US military attack.  Delegations headed by US Special Envoy to the Middle East Steve Witkoff and Iran’s Foreign […]
© State Specialized Enterprise IAEA inspectors help ensure safety at Ukrainian nuclear power plants. .

Ukraine war keeps nuclear safety on a knife-edge, UN watchdog warns

This article is published in association with United Nations. Attacks on Ukraine’s power system highlight how the ongoing war threatens the safety of the country’s nuclear facilities, the head of the International Atomic Energy Agency (IAEA) warned on Friday.  Russian forces have been carrying out strikes on critical infrastructure amid freezing winter temperatures as their full-scale invasion approaches the […]
This article is published in association with United Nations.

Disability-Inclusive Healthcare: Breaking Barriers to Equity

This article was exclusively written for The European Sting by Ms. Mechoiteu Jijou Berny is a seventh-year medical student at Université des Montagnes in Bangangté, West Region of Cameroon. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and […]
This article was exclusively written for The European Sting by one of our passionate readers, Mr. Andrew Gardner, a strategic and international business consultant. The opinions expressed within reflect only the writer’s views and not necessarily The European Sting’s position on the issue.

Most European Countries are not yet Prioritising European-Made Arms 

This article was exclusively written for The European Sting by one of our passionate readers, Mr. Andrew Gardner, a strategic and international business consultant. The opinions expressed within reflect only the writer’s views and not necessarily The European Sting’s position on the issue. In October 2025, the European Defence Industry Programme (EDIP) was approved by the European […]
UN chief warns of ‘grave moment’ as final US-Russia nuclear arms treaty expires

UN chief warns of ‘grave moment’ as final US-Russia nuclear arms treaty expires

UN Secretary-General António Guterres has warned that the expiration of the New START treaty represents a “grave moment” for international peace and security, as binding limits on US and Russian strategic nuclear weapons fall away amid heightened global tensions. In a statement issued as the treaty expired at midnight GMT Thursday, he said the world […]
UN Ukraine A residential building in Ukraine shows signs of damage following overnight attacks.

Ukraine: Civilians injured, miners killed, in separate Russian attacks

This article is published in association with United Nations. A fresh wave of Russian strikes overnight across Ukraine injured several people and left thousands “without heat in the heart of winter,” the UN Humanitarian Coordinator in the country said on Tuesday.  Matthias Schmale was “appalled” by the attacks in Dnipro, Kharkiv and Kyiv, noting that many more people in several […]
UN News An injured child waits in the courtyard of Al-Amal Hospital in Khan Younis.

Gaza: Limited Rafah crossing reopening sparks hope – but also ‘massive trepidation’

This article is published in association with United Nations. The reopening of the Rafah crossing in the southern Gaza Strip on Monday after more than a year is being met with both optimism and fear, a senior official with the UN agency that assists the Palestinian people, UNRWA, has said.  The sole border point with Egypt is a […]
WFP Children in Fangak county, Jonglei State eat a cooked meal of sorghum. WFP provides food rations to food insecure families containing sorghum, oil, salt, peas and maize (January 2022).

South Sudan: ‘All the conditions for a human catastrophe are present’

This article is published in association with United Nations. Military tensions in South Sudan are “rapidly expanding” between Government forces and opposition militia as fighting continues in restive Jonglei state. Briefing journalists based at UN Headquarters in New York on Friday, Anita Kiki Gbeho, Officer in Charge of the UN Mission in South Sudan (UNMISS), said […]
© UNICEF/Oleksii Fili Children's toys are covered in snow outside a residential building in Kyiv during prolonged winter power and heating outages.

World News in Brief: Syria ceasefire welcomed, ‘Olympic truce’, Ukraine’s freezing children

This article is published in association with United Nations. The UN Commission of Inquiry on Syria has welcomed a ceasefire agreement between the Syrian Government and the mainly-Kurdish Syrian Democratic Forces (SDF), urging all parties to seize the moment to protect civilians and prevent further violations in the country’s northeast.  “We welcome efforts to bring stability […]
This article was exclusively written for The European Sting by Mr. Frank Shao is a Tanzanian medical student. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Access to Healthcare: is it too much to ask?

This article was exclusively written for The European Sting by Mr. Khalil Al Bilani is a 5th-year medical student at Saint George’s University of Beirut. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect […]
UN Photo/Manuel Elías Ramiz Alakbarov (on screen), Deputy Special Coordinator for the Middle East Peace Process, briefs the Security Council meeting on the situation in the Middle East.

Potential turning point for Gaza as peace plan enters second phase: UN envoy

This article is published in association with United Nations. The start of a second phase of a stabilisation plan for Gaza offers a potential turning point for the war-ravaged enclave, a senior UN official told the Security Council on Wednesday. Ramiz Alakbarov warned that risks of violence escalating again remain high, while the situation in the […]
This article is published in association with United Nations.

Gaza ceasefire improves aid access, but children still face deadly conditions

The fragile ceasefire in the Gaza Strip is making a difference to the lives of over a million children, and improving overall access to food – but more aid still needs to enter.  That’s the assessment of two senior officials from the UN Children’s Fund (UNICEF) and the World Food Programme (WFP), speaking on Monday to journalists in New York following a […]

A new blow for UNRWA as headquarters in East Jerusalem ‘set on fire’

© UNRWA Destruction at UNRWA headquarters in East Jerusalem after Israeli authorities sent in bulldozers on 20 January. This article is published in association with United Nations. The head of embattled UN relief agency for Palestinians, UNRWA, has condemned reports that its headquarters in East Jerusalem have been set alight deliberately. It comes after Israeli authorities […]
© UNHCR/Yevheniia Kozun This cinema in Saltivka, Kharkiv, was hit during an earlier strike (file Jan 2026).

‘Cycle of attacks must end’: Lead UN official in Ukraine

This article is published in association with United Nations. The senior UN official in Ukraine, Matthias Schmale, has issued a condemnation of the massive overnight Russian drone and missile strike on several major Ukrainian cities, killing and injuring civilians, and knocking out energy infrastructure amid sub-zero temperatures. The attacks on some of Ukraine’s most important population […]
WHO/P. Virot The flag of the UN World Health Organization (WHO) flies at its headquarters in Geneva, Switzerland.

US withdrawal from WHO ‘risks global safety’, agency says in detailed rebuttal

This article is published in association with United Nations. The World Health Organization (WHO) has issued a detailed statement regretting the United States decision to leave the UN agency, and declaring that it will leave both the US and the world less safe as a result. The statement, released on Saturday, also includes a rebuttal of […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com