By Maria Martinez
BERLIN, Jan 14 (Reuters) - Germany's finance minister called on Wednesday for a new era of "European patriotism" to protect regional economic interests, proposing that companies receiving state aid be required to keep jobs in Europe and that public procurement prioritises Europe-made goods.
Speaking at a lecture at the German Institute for Economic Research DIW Berlin, Lars Klingbeil said Europe must fundamentally rethink its approach as traditional alliances dissolve and trade becomes increasingly weaponised.
"We need more European patriotism," Klingbeil said. "That means when we make public investments, we use goods produced in Europe."
"The transatlantic alliance as we knew it is dissolving," Klingbeil said, noting the Trump administration's National Security Strategy shows the United States is "turning away from Europe politically and culturally".
RISK OF UNDERESTIMATING THE UPHEAVAL, MINISTER SAYS
His comments come days after German President Frank-Walter Steinmeier strongly criticised U.S. foreign policy under President Donald Trump, and spoke of a "breakdown of values" that had built the world order.
Klingbeil said trade was increasingly "weaponised" through subsidies, overcapacity, tariffs and export controls, putting pressure on Germany's export-oriented economy.
Europe's biggest economy contracted in 2023 and 2024 and only modest growth of 0.2% is expected for 2025. Preliminary results will be published on Thursday.
"We must become stronger and more sovereign so we don't become pawns of the great powers," Klingbeil said. "Those who believe we can simply export our way out of the current situation underestimate the upheavals taking place."
Klingbeil outlined a strategy centred on strengthening European unity, diversifying trade partnerships beyond the U.S., and protecting European markets from unfair competition.
POINTS TO GERMANY'S MODERNISATION BACKLOG
Germany suffers from a significant modernisation backlog that must be urgently addressed to maintain its competitiveness, Klingbeil said.
He outlined visible problems, including closed bridges, late trains and dilapidated schools, and other issues such as excessively long approval procedures and burdensome regulations.
Germany's coalition government plans a surge in public spending targeting defence and infrastructure, hoping to close gaps in long-neglected areas of investment while hauling the economy out of stagnation.
Klingbeil said only the combination of state and private-sector investment could generate the modernisation and growth Germany required.
"The most dangerous thing now would be if we rest on the status quo," Klingbeil said. "Then we will continue to lose economic strength, social cohesion and political legitimacy."
(Reporting by Maria Martinez, Editing by Madeline Chambers and Alison Williams)
