Germany's finance minister urges Europe to prepare for potential Trump comeback and boost competitiveness

According to the German minister, Europe should serve as an equal partner for the USA, both in economic relations and in sharing NATO responsibilities fairly.

Lindner expressed apprehensions about the European Union's decision makers emulating the USA by increasing subsidies across all sectors. "We have to avoid a subsidy race," Lindner warned at the World Economic Forum in Davos. He also questioned whether the next US administration will sustain high levels of economic support in the long-term.

Lindner also addressed the sluggish growth forecasts for the German economy. "We have a good cup of coffee, which means structural reforms," he underlined. He explained that the warning call came in 2023, regarding the challenges his country faces, including the advancement of artificial intelligence and the risk of schisms in the global economy.

As noted by Reuters, the German economy, the largest in the Eurozone, diminished by 0.3 percent last year due to persistent inflation, high energy prices, and weak foreign demand. "This requires greater productivity through innovations, investments and more dynamism in startups," Lindner said to Reuters.

In the meantime, Donald Trump is lobbying Republican politicians in the US Congress to reject a bill currently under negotiation in the Senate, which incorporates stringent immigration reforms and financial measures for Ukraine, Israel, and Taiwan, according to US media reports.

Though Republicans made their support for Ukraine aid contingent on Democrats' acceptance of border restrictions, as the talks progressed and Democrats showed more concessions, Republican congress members increasingly indicated they would oppose the negotiated compromise. As reported by CNN and The Hill, former president Trump exerts influence behind the scenes to convince his party's politicians.

Trump is reportedly working to deny Joe Biden a political victory in an election year, particularly as the border crisis serves as a primary point of contention from Republicans against the current president in their election campaign.