Berlin looks beyond traditional allies amid rising global uncertainty

Germany needs to diversify its international partnerships as the global landscape becomes more unstable, Economy Minister Katherina Reiche said on January 27, pointing to worsening ties with the United States that have led to the imposition of costly import tariffs.

Speaking at the Handelsblatt energy summit, Reiche said long-standing alliances were becoming less reliable. “The world has become more uncertain, and alliances that we have trusted and relied on are beginning to crumble,” she said. “That does not mean abandoning them, but rather continuing to work together, however challenging that may be in some cases, and above all seeking new partners.”

She highlighted several regions as priorities for deeper cooperation, including South America, India, the Middle East, Canada, Australia and parts of Asia, naming Malaysia among the countries of interest.

Reiche’s remarks come amid growing questions about the future role of the United States following President Donald Trump’s decision to impose tariffs on major partners such as Canada and the European Union.

Expanding economic ties beyond traditional allies, she added, would also be crucial for strengthening Germany’s economy — the largest in Europe — which is currently expected to see growth mainly driven by debt-financed spending on defence and infrastructure.

“We are talking about 1%, 1.5%,” she said, referring to projected GDP growth. “This is not sustainable.”

According to a person familiar with the matter, the German government is expected on Wednesday to cut its 2026 growth forecast to 1.0% from the previously projected 1.3%, while growth for 2027 is estimated at 1.3%.

By Tamilla Hasanova