U.S.-Germany

A European Conundrum

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. Friedrich Neumann Stiftung breakfast roundtable. Hosted by Claus Gramckow. Kevin O'Brien (2nd left)). Gabor Steingart (talking) Claus. Franziska Scheven and Lea Steinacker behind.
Handelsblatt publisher Gabor Steingart (talking) discussed Europe's security conundrum during a breakfast round table at the Friedrich Naumann Foundation in Washington, D.C., on Monday.
  • Why it matters

    Why it matters

    Handelsblatt Global Edition offers exclusive insights helping executives and policymakers to understand Europe’s largest economy and make better decisions about business and politics there.

  • Facts

    Facts

    • Handelsblatt is Germany’s leading business newspaper, covering business, finance and politics, and offering exclusive interviews with CEOs and senior politicians.
    • Handelsblatt Global Edition brings this exclusive content in English along with features from other leading newspapers and magazines in Germany, including Die Zeit.
    • Handelsblatt Global Edition’s editor in chief and publisher are on a 10-day roadshow in the United States to stimulate discussion of trans-Atlantic issues.
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How is Germany dealing with the refugee crisis? And how is the country handling the increased threat of terrorism in Europe?

Immigration and security are issues of concern for many Europeans, and were at the heart of Monday’s roundtable discussion at the Friedrich Naumann Foundation’s Transatlantic Dialogue Program in Washington, D.C.

“Currently what Germany is doing is checkbook diplomacy – a diplomacy of writing checks,” Handelsblatt editor and publisher Gabor Steingart said about the country’s efforts in solving the refugee crisis during the debate under the headline “Europe: The Overburdened Continent and Germany on the Crossroads.”

Mr. Steingart was critical of the approach of Chancellor Angela Merkel and her supporters to win over Turkey as an ally to curb the influx of  refugees entering the European Union.

“First, they wrote checks to the Greek government, now to Turkey,” he told an audience of around 25 government and business representatives, journalists and academics. “This is how they want to solve the problem.”

Under the agreement reached between E.U. and Turkish leaders in Friday, all migrants and refugees reaching the Greek islands are to be deported back to Turkey after being registered, and for every Syrian returned, the European Union will resettle one from a Turkish refugee camp.

In return for its cooperation, Turkey has won E.U. support to double refugee aid to €6 billion ($6.8 billion), allow visa-free travel for its citizens in Europe’s Schengen passport-free zone and accelerate its long-stalled bid to join the European Union.

Kevin O’Brien, editor in chief of Handelsblatt Global Edition, put Europe’s refugee crisis into perspective: The almost 1.5 million refugees who have already reached Europe would be the equivalent to 5 million people entering the United States within only a few months, he said. Europe, he added, needs to build a solid perimeter around its outer borders to control the intake of asylum seekers while maintaining free movement of goods and people within the region.

Mr. Steingart considers Germany’s current position on the refugee crisis as naïve. “Or as Gerhard Schröder, Angela Merkel’s predecessor, put it, ‘big heart, no plan’,” he said.

Walter Stadtler of the National Defense University questioned whether the flow of information between refugees via social media and other networks was encouraging people to come to Europe and intensifying current migration movements.

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. Friedrich Neumann Stiftung breakfast roundtable. Hosted by Claus Gramckow. The HGE magazine at the round table breakfast.
The antagonism of an open-door refugee policy and increased terrorist threats were on the agenda of the round table discussion. Source: Dermot Tatlow

 

He also asked how Germany was monitoring information related to potential terrorism attacks.

“To address the rise of extremism and respond appropriately to security threats in the digital age, the German government and other European nations are in desperate need of technological expertise and intelligence cooperation,” said Lea Steinacker of the German weekly Wirtschaftswoche at the meeting.

Since the Paris attacks on November 13, government and security officials in France and around Europe have been scrutinizing how the Islamic State was able to organize the terrorist attacks under the radar of Western intelligence.

Mr. Steingart stressed the need for more powerful European institutions to address these issue. “At the moment, it is only the European Central Bank that has an impact, but we need other institutions in Europe to gain strength, too,” he said.

He also pointed out that the European Union is a two-speed region: While all member states are required to make decisions together, only a few actually take action on issues, including Germany, France, Italy and the United Kingdom.

The Naumann roundtable was the latest of several stops during Handelsblatt Global Edition’s 10-day U.S. roadshow, meeting with think-tanks, businesses and opinion leaders in Washington and New York.

Handelsblatt Global Edition on it's U.S. roadshow

Outrage and Outreach

 

Handelsblatt US Roadshow. At the University Club of New York. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. American Council on Germany holds their annual Utley Memorial Lecture with Gabor Steingart. Host Steve Sokol, of the American Council on Germany (left), Gertje Utley, wife of the late Garrick Utley and Gabor Steingart (right)
Gabor Steingart, CEO of the Handelsblatt Publishing Group, talks to host Steve Sokol of the American Council on Germany (left) and Gertje Utley, wife of the late Garrick Utley, after the annual Utley Memorial Lecture. Source: Dermot Tatlow

 

Has the media lost the trust of the average voter?

It’s a question that rings in the hearts of many Americans and the international community these days as they watch a firestorm gather around the possible nomination of Donald Trump, a billionaire populist who has drawn condemnation internationally for his anti-immigrant rhetoric, as the Republican candidate for U.S. president.

Is it the media’s fault, or that of Washington’s broken political establishment?

Those were some of the thoughts and concerns expressed during an annual lecture series on journalism that took place in New York on Friday in honor of the longtime and respected U.S. journalist Garrick Utley, hosted by the American Council on Germany.

The fact that Donald Trump has risen to political prominence is not the media’s fault, said Kevin O’Brien, editor in chief of Handelsblatt Global Edition.

“Blaming the media is your last line of defense. When somebody is blaming the media, that means they are usually running out of options and are backed into a corner,” he said.

That doesn’t mean the media can rest on its laurels, argued Gabor Steingart, publisher of Handelsblatt and Handelsblatt Global Edition. Journalists need to do a better job of reinventing themselves and getting back in touch with their readers.

“The media likes to blame the Internet for almost everything that has hurt their business over the last decade,” Mr. Steingart said. But he added: “There is no need for despair. We are not dying, we are just transforming ourselves.”

The Internet may have transformed the media landscape, but the bigger driver of change is regular people challenging the established media’s dominance, Mr. Steingart said. The answer for the so-called mainstream media isn’t to walk away from the fight.

Outreach is not about being a slave to entertainment, but engaging readers in a conversation, listening to their concerns and their fears about politics and the political process – on both sides of the Atlantic.

“The digital age and the constant push of our readers and viewers for more participation is a positive force for progress. Let’s be part of the solution instead of part of the problem,” he said.

“We have to figure out new partnerships with our readers,” Mr. Steingart added. “It’s not going to be just about reading but inviting them into our club and exchanging ideas with them.”

It’s a sentiment that the German media in particular has long resisted, but that is starting to change. The U.S. may have entered the digital age first, but German readers, who have been reliant on good, old-fashioned newspapers for longer, are also starting to wake up to the online era, argued Mr. O’Brien of Handelsblatt Global Edition.

The Global Edition of Handelsblatt is one example of Germany’s own new outreach – an English-language digital publication trying to bridge the divide and break through some of the misconceptions between Germany, Europe and the United States, he said.

The Garrick Utley Memorial Lecture Series in New York was Handelsblatt’s latest stop on a 10-day tour of the United States, meeting with think-tanks and opinion leaders in Washington and New York.

Refugees, Free Trade and Populist Anger

 

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. Lunch at the German embassy hosted by Ambassador Peter Wittig. Kevin O'Brien, editor in chief of HGE addresses the lunch.
At Handelsblatt’s roadshow in the United States, Kevin O’Brien, editor in chief of the Global Edition, addresses guests during the luncheon. Source: Dermot Tatlow

 

 

It’s often been said that trends in the United States reach Europe with a time lag of about five years. Does that mean that Donald Trump could be on his way to Europe too?

Actually, he may already have arrived.

Listening to a discussion on the state of Europe’s politics in the U.S. capital on Thursday, the rise of populism is one of those rare trends that has grabbed the United States and Europe at exactly the same time – and it’s not a pretty picture.

At an event hosted by Handelsblatt Global Edition at the German embassy in Washington, much talk was of the souring German mood towards refugees and the rise of the “Alternative for Germany,” a populist party that was founded as an anti-euro party but in the past months has pushed back hard against immigration and the influx of more than 1 million refugees into Europe last year.

 

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. Lunch at the German embassy hosted by Ambassador Peter Wittig. Steingart addresses the lunch.
Gabor Steingart, CEO of the Handelsblatt Publishing Group, is in the U.S. to introduce the Handelsblatt Global Edition. Source: Dermot Tatlow

 

Last week, the AfD won more than 10 percent of the vote in three German states. Its success comes after other major victories by populist groups across the rest of Europe, from France to Italy to Greece.

“There are signs of a perfect populist storm coming to Europe,” warned Gabor Steingart, Handelsblatt’s publisher, at a lunch that included members of the International Monetary Fund, the World Bank, business representatives and congressional staffers.

Mr. Steingart counts himself as one of the pessimists on the state of Europe. He argued that democracy and the Europe Union have become like “two left feet,” in danger of “losing ordinary people” and in need to do a better job of reaching out to voters that feel nobody is listening to their concerns – whether on the challenge posed by refugees or by things like trade and globalization.

E.U. politics is leaderless at the moment, he argued. Even German Chancellor Angela Merkel, the leader of Europe’s largest economy, “cannot claim to be the leader of Europe” after many countries have rejected her open-door policy toward refugees, Mr. Steingart said.

 

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. Lunch at the German embassy hosted by Ambassador Peter Wittig. Steingart greets Wittig after his opening remarks .
Mr. Steingart with the ambassador Mr. Wittig following his opening remarks. Source: Dermot Tatlow

 

Not everyone is quite so pessimistic, however. Peter Wittig, Germany’s ambassador to the United States, said he was confident that support for right-wing populist groups like the AfD will wane as the refugee crisis facing Europe eases over the coming years.

“I don’t see Europe yet at an abyss where it is about to implode,” Mr. Wittig said. The European Union has long been about messy compromises: “It’s not always a satisfactory process, but it does work.”

But Mr. Wittig was pessimistic on one point: The long-running economic crisis and refugee challenge in Europe have sapped much of Europe’s will to cooperate more closely together: “We’re going to see an era now where we see less integration.”

The populist anger has spread well beyond the issues of refugees and immigration. Mr. Steingart warned that the U.S.-E.U. free-trade deal is in danger of collapsing unless politicians and business leaders can turn the tide against voters that believe trade has brought them little more than jobs shifted overseas.

How to confront the anti-trade lobby? Make the U.S.-E.U. free-trade deal, known as TTIP, about something bigger than just trade, Mr. Steingart argued.

“TTIP is a framework we need for cooperation.” Like NATO has brought the trans-Atlantic community together on security, TTIP, he argued, could bring the United States and Europe closer together economically.

 

American Enterprise Institute roundtable

 

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. With fellows at a breakfast meeting at the American Enterprise Institute. Gary Schmitt, AEI resident scholar (right), Fred Irwin, president of the Global edition, centre, Karlyn Bowman, AEI senior fellow (left).
Gary Schmitt, AEI resident scholar (right), Fred Irwin, president of the Handelsblatt Global Edition, center, and Karlyn Bowman, AEI senior fellow (left). Source: Dermot Tatlow

 

At the opening of a 10-day tour to promote Handelsblatt Global Edition, the Handelsblatt publisher and chief executive, Gabor Steingart, discussed the political and economic crises facing Europe on Thursday at the American Enterprise Institute, one of Washington’s iconic conservative think tanks.

In a well-attended roundtable talk, Gary Schmitt, one of the institute’s senior directors, questioned what appeared to be Russia’s increasing leverage over Germany and Europe through its deliveries of natural gas via the Nordstream pipeline under the Baltic Sea. Mr. Schmitt said Russia was also using military action in Syria as leverage by controlling the flow of refugees into Germany.

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group is in the US to introduce the english language Handelsblatt Global Edition. With fellows at a breakfast meeting at the American Enterprise Institute.
Fellows in talk at a breakfast meeting at the American Enterprise Institute. Source: Dermot Tatlow

 

“It seems like Putin is getting his way in Europe,’’ said Mr. Schmitt, a former staff director of the U.S. Senate Select Committee on Intelligence who is co-director of the Marilyn Ware Center for Security Studies.

Mr. Steingart responded that economic sanctions supported by the West, including Germany, had had no effect on Russia and only increased tensions in Europe. “Russia has to be allowed to be part of the solution,’’ Mr. Steingart said.

Jeff Gedmin, the former president of Radio Free Europe and Radio Liberty, U.S. global broadcasters, said rising economic and social tensions in Europe caused in part by the refugee migration crisis had raised concerns in Washington that Europe could effectively rise to the multiple challenges. The potential rise of a far-right government in France and Britain’s possible departure from the European Union could redefine relationships on the continent, he said, and not in a good way.

Handelsblatt US Roadshow. Gabor Steingart, CEO of the Handelsblatt Publishing Group (left) is in the US to introduce the english language Handelsblatt Global Edition. Kevin O'Brien, (centre) hold a breakfast meeting at the American Enterprise Institute.
Gabor Steingart, CEO of the Handelsblatt Publishing Group (left), Kevin O’Brien, (center) and Oliver Finsterwalder, CFO of the von Holzbrinck Media Holding, hold a breakfast meeting at the American Enterprise Institute. Source: Dermot Tatlow

 

“I’m not a euro-skeptic anymore,’’ said Mr. Gedmin, a senior fellow at Georgetown University. “But I am afraid that the E.U. could come apart and not in a smooth, amicable way.’’

The United States, Mr. Gedmin said, “has no clear idea of what Europe should look like.’’

Mr. Steingart said Germany and Europe have no coherent solution to the refugee crisis, and the challenges of integrating 1.1 million people from Syria and Iraq have been underestimated. European leaders, including Ms. Merkel, are not addressing the challenges, nor are they coming up with clear positions on key issues such as job retraining and cultural integration.

“Leaders in Europe are just muddling through,’’ Mr. Steingart said.

Ulrich Speck, a senior fellow at the Transatlantic Academy, a Washington think tank, said a good part of Germany still backed Angela Merkel’s open-doors policy to the refugee crisis. In state elections last Sunday, leading political candidates in Rhineland-Palatinate and in Baden-Württemberg who supported Ms. Merkel’s positions prevailed, he noted.

“The situation is not as pessimistic as some paint it to be,’’ Mr. Speck, who is German, said.

Christopher Cermak and Franziska Scheven are editors with Handelsblatt Global Edition. To contact the authors: cermak@handelsblatt.com, scheven@handelsblatt.com

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