In an increasingly dangerous world, Europe must stand even closer together
As geopolitical tensions intensify, Europe finds itself in a complex and often constrained position. While the continent has largely remained a bystander in the Middle East conflict – partly limiting political fallout – the economic consequences cannot be avoided. Concurrently, the ongoing war in Ukraine continues to demand sustained attention, with Europe ever more needing to rely on its own strength and unity.
These growing challenges highlight a difficult reality: Europe must do more to generate economic growth in order to finance its security, resilience, and long-term stability. At the same time, it is becoming clearer that overall prosperity may not rise in the short or even in the medium term – an honest message that governments will need to communicate more clearly.
Political developments reflect this tension. Recent state elections in Germany have seen a rise in populist parties, and similar trends may emerge in the UK’s upcoming local elections. This underlines the urgency for governments to take decisive action: reducing bureaucracy and creating stronger incentives for business investment to generate employment.
Even with an absence of new regulations, businesses increasingly face more stringent enforcement, which is proving to focus on processes rather than outcomes. This often hinders companies’ ability to operate efficiently and grow. Addressing this requires a shift in approach, alongside streamlined taxation and careful management of employment costs. More efficient and flexible social security systems will also be key.
To better understand how businesses are navigating these conditions, we are currently conducting our Spring Survey, gathering insights from companies on how they view the current economic environment in the UK. We encourage you to share your perspective and contribute to this important snapshot of business sentiment.
Many of these themes mentioned above will be at the heart of discussions at our upcoming Germany-UK Business-Government Forum in Berlin on 27 April 2026. Covering topics from defence and resilience to industrial cooperation, the Forum will bring together key stakeholders to address the challenges ahead. We look forward to welcoming many of you there to join these important conversations.
Dr Ulrich Hoppe
Hauptgeschäftsführer
Deutsch-Britische Industrie- und Handelskammer
