I would like to offer a warm welcome to the Ambassadors Conference Business Forum here at the German Foreign Ministry. This year again, I am very much looking forward to the conversations and encounters that will take place.

I am especially delighted to welcome my dear friend Maroš Šefčovič, European Commissioner for Trade and Economic Security.

Dear Maroš, indeed, I want to start my brief introductory remarks with a quote of yours. It’s a joke you once told:

A teacher asks her class what they want to be when they grow up. A little kid answers: “Something promising – a Mercosur negotiator. Just like my dad. Just like my grandpa.”

Dear Maroš – I am proud to say: thanks to our extremely close cooperation, we are the last generation of MERCOSUR negotiators. Kids in school are going to have to find a different career path. But that is something entirely positive for their future.

And when I look to the future, I see a fundamentally different global economic situation. As we all know, a large part of Germany's prosperity is earned abroad.

Around one in four jobs depends on exports, with just under one in two jobs in industry!

But our economy is not just export-oriented. I would call it partner-oriented: It also depends on inputs such as energy and critical raw materials.

Germany and Europe are particularly dependent on open markets, on reliable trade rules and on diversified economic relations.

I do not have to tell you that this system is under pressure. The reasons for this are obvious.

Russia’s war of aggression continues to rage against Ukraine – absorbing both economic and military resources.

The ongoing crisis in the Strait of Hormuz is heavily impacting the global energy price and affecting our economies.

Our economic ties with China are increasingly imbalanced. Non-market policies and an undervalued currency threaten to erode our industrial base and turn critical dependencies into strategic vulnerabilities.

At the same time, we are navigating volatile and challenging trade relations with the United States, traditionally the EU’s closest trading partner.

And on top of all that: climate change and extreme weather events are triggering significant economic losses and disrupting supply chains.

The main question for Germany is: how do we navigate this new environment – one which is here to stay.

The answer must first and foremost be a European one: to strengthen the EU as a geoeconomic powerhouse, to defend our values and secure our prosperity, also in tomorrow’s global economy.

Ladies and gentlemen, as an institution, we have drawn our own conclusions here.

When geopolitics starts to drive – or even dictate – the global economy, we have to join the dots. That is why we have fundamentally reformed our Ministry.

We have created a new department bringing together geoeconomics and European affairs so we can react swiftly to the global situation.

We are also adapting to the federal budget, intending to cut off 8 % of our staff and making the best out of this situation by creating a leaner, more agile organisation.

But this isn't just about us. In an era of politically contested markets, the state and the economy must work hand in hand. The only way the German Government and German industry can navigate this crisis is by pulling in the same direction.

Two key points from my side are:

First, when I travel, I don't want to be the one lecturing – I want to strengthen partnerships. That is why I bring business delegations with me.

Second, my Ministry has a clear mandate: to prioritise German and European economic interests and provide maximum support for your – and I am now looking towards the business representatives – projects abroad.

We are living in an era of fragmented trade relations. Companies risk being instrumentalised by foreign states – an approach that runs diametrically opposed to our economic mentality and the economic model underpinning our success for decades.

This means we need to change our mindset.

Your companies are no longer operating in a geopolitically predictable environment or a rules-based global system. You are operating in countries whose economic policies and their implications are shaking up our traditionally most successful sectors and companies.

At the same time, the global economy is undergoing a profound transformation, with new growth sectors such as AI and cleantech emerging.

Today, political risks and critical vulnerabilities, also future ones, have to be part of the risk calculation carried out by each and every company: we will reach a limit on the extent to which we can protect your interests.

With MERCOSUR, we are offering you a way out.

We are opening the door for you to diversify your export markets but also your sources for inputs such as critical minerals. And we have been working successfully on many more important Free Trade Agreements – with Maroš leading the way. Thank you for that! Together, dear Maroš, we are “Team Europe”.

And our goal is clear: we must make the European Union an even stronger geoeconomic powerhouse. To navigate the geoeconomic conflicts of the future, we have to strengthen our economic base. And we need to strengthen our competitiveness across the board.

The EU single market is central to this – and it has been the key driver of German economic growth this year, while exports to our two main trade partners outside Europe have dropped dramatically.

We cannot lose sight of deepening the single market, pushing forward the Savings and Investments Union, and delivering industrial policy packages to secure critical supply chains within Europe.

Because when global markets break away, and trade with China and the US weakens, the EU is our safety net. It is our anchor and our real engine for growth.

The numbers speak for themselves: the single market generated more than two-thirds of our growth in GDP. It’s not a full recovery yet, but it’s a start.

But here is the second point: being competitive isn't enough. We, Europe, have to fight harder for our interests.

We need resolute de-risking to strategically reduce our economic vulnerabilities.

We must stop our vulnerabilities being weaponised.

We must protect our critical infrastructure, especially critical components.

We must reduce strategic dependencies.

Dear Maroš,

Dear guests,

My team and I are focused on these geoeconomic challenges. And we are tackling them with full force – here in Berlin, in Brussels and in our many missions abroad.

But as I said: we need you, the businesses, the companies. You are the key players.

For Team Europe as a geoeconomic powerhouse.

Thank you.