Many describe our geopolitical moment as one of instability, but that word feels
too weak for what we are living through. Some, like Mark Carney, argue that we
are facing a rupture: a break with assumptions that anchored the global economic
and political order for decades. Others, like Christine Lagarde, see a profound
transition, a shift toward a new configuration of power, technology and societal
expectations. Whichever perception we adopt, the implication is clear: leaders
can no longer rely on yesterday’s mental models, institutional routines or
governance templates.
Johanna Mair is the Director of the Florence School of Transnational Governance
at the European University Institute in Florence, where she leads education,
training and research on governance beyond the nation state.
Security, for example, is no longer a discrete policy field. It now reaches
deeply into energy systems, artificial intelligence, cyber governance, financial
stability and democratic resilience, all under conditions of strategic
competition and mistrust. At the same time, competitiveness cannot be reduced to
productivity metrics or short-term growth rates. It is about a society’s
capacity to innovate, regulate effectively and mobilize investment toward
long-term objectives — from the green and digital transitions to social
cohesion. This dense web of interdependence is where transnational governance is
practiced every day.
The European Union illustrates this reality vividly. No single member state can
build the capacity to manage these transformations on its own. EU institutions
and other regional bodies shape regulatory frameworks and collective responses;
corporations influence infrastructure and supply chains; financial institutions
direct capital flows; and civic actors respond to social fragmentation and
governance gaps. Effective leadership has become a systemic endeavour: it
requires coordination across these levels, while sustaining public legitimacy
and defending liberal democratic principles.
> Our mission is to teach and train current and future leaders, equipping them
> with the knowledge, skills and networks to tackle global challenges in ways
> that are both innovative and grounded in democratic values.
The Florence School of Transnational Governance (STG) at the European University
Institute was created precisely to respond to this need. Located in Florence and
embedded in a European institution founded by EU member states, the STG is a hub
where policymakers, business leaders, civil society, media and academia meet to
work on governance beyond national borders. Our mission is to teach and train
current and future leaders, equipping them with the knowledge, skills and
networks to tackle global challenges in ways that are both innovative and
grounded in democratic values.
What makes this mission distinctive is not only the topics we address, but also
how and with whom we address them. We see leadership development as a practice
embedded in real institutions, not a purely classroom-based exercise. People do
not come to Florence to observe transnational governance from a distance; they
come to practice it, test hypotheses and co-create solutions with peers who work
on the frontlines of policy and politics.
This philosophy underpins our portfolio of programs, from degree offerings to
executive education. With early career professionals, we focus on helping them
understand and shape governance beyond the state, whether in international
organizations, national administrations, the private sector or civil society. We
encourage them to see institutions not as static structures, but as arrangements
that can and must be strengthened and reformed to support a liberal, rules-based
order under stress.
At the same time, we devote significant attention to practitioners already in
positions of responsibility. Our Global Executive Master (GEM) is designed for
experienced professionals who cannot pause their careers, but recognize that the
governance landscape in which they operate has changed fundamentally. Developed
by the STG, the GEM convenes participants from EU institutions, national
administrations, international organizations, business and civil society —
professionals from a wide range of nationalities and institutional backgrounds,
reflecting the coalitions required to address complex problems.
The program is structured to fit the reality of leadership today. Delivered part
time over two years, it combines online learning with residential periods in
Florence and executive study visits in key policy centres. This blended format
allows participants to remain in full-time roles while advancing their
qualifications and networks, and it ensures that learning is continuously tested
against institutional realities rather than remaining an abstract exercise.
Participants specialize in tracks such as geopolitics and security, tech and
governance, economy and finance, or energy and climate. Alongside this subject
depth, they build capabilities more commonly associated with top executive
programs than traditional public policy degrees: change management,
negotiations, strategic communication, foresight and leadership under
uncertainty. These skills are essential for bridging policy design and
implementation — a gap that is increasingly visible as governments struggle to
deliver on ambitious agendas.
Executive study visits are a core element of this practice-oriented approach. In
a recent Brussels visit, GEM participants engaged with high-level speakers from
the European Commission, the European External Action Service, the Council, the
European Parliament, NATO, Business Europe, Fleishman Hillard and POLITICO
itself. Over several days, they discussed foreign and security policy,
industrial strategy, strategic foresight and the governance of emerging
technologies. These encounters do more than illustrate theory; they give
participants a chance to stress-test their assumptions, understand the
constraints facing decision-makers and build relationships across institutional
boundaries.
via EUI
Throughout the program, each participant develops a capstone project that
addresses a strategic challenge connected to a policy organization, often their
own employer. This ensures that executive education translates into
institutional impact: projects range from new regulatory approaches and
partnership models to internal reforms aimed at making organizations more agile
and resilient. At the same time, they help weave a durable transnational network
of practitioners who can work together beyond the programme.
Across our activities at the STG, a common thread runs through our work: a
commitment to defending and renewing the liberal order through concrete
practice. Addressing the rupture or transition we are living through requires
more than technical fixes. It demands leaders who can think systemically, act
across borders and design governance solutions that are both unconventional and
democratically legitimate.
> Across our activities at the STG, a common thread runs through our work: a
> commitment to defending and renewing the liberal order through concrete
> practice.
In a period defined by systemic risk and strategic competition, leadership
development cannot remain sectoral or reactive. It must be interdisciplinary,
practice-oriented and anchored in real policy environments. At the Florence
School of Transnational Governance, we aim to create precisely this kind of
learning community — one where students, fellows and executives work side by
side to reimagine how institutions can respond to global challenges. For
policymakers and professionals who recognize themselves in this moment of
rupture, our programs — including the GEM — offer a space to step back, learn
with peers and return to their institutions better equipped to lead change. The
task is urgent, but it is also an opportunity: by investing in transnational
governance education today, we can help lay the foundations for a more resilient
and inclusive order tomorrow.
Tag - Governance
The composition of the next Danish government may hinge on a former prime
minister with a penchant for brushing his teeth with hand soap.
The Social Democrats of incumbent center-left Prime Minister Mette Frederiksen
are projected to get the most votes when Danes go to the polls on March 24. But
whether they can form a government will likely be decided by Lars Løkke
Rasmussen, leader of the centrist Moderate Party.
Rasmussen, a former prime minister currently serving as the country’s foreign
minister, was the face of Copenhagen’s defiance of threats by U.S. President
Donald Trump to annex Greenland earlier this year. At the time, he and
Frederiksen seemed like a dynamic duo protecting the Kingdom.
But just a day before Tuesday’s elections in Denmark, a right-leaning and a
left-leaning bloc are nearly tied with each other in the polls, both just short
of a majority in the country’s 179-seat parliament. Rasmussen’s Moderates,
meanwhile, are projected to secure 12 seats.
That sets him up to either backstop Frederiksen to form another broadly centrist
government, or hand power to Deputy PM Troels Lund Poulsen, leader of the
center-right Venstre party and the preferred PM candidate of the right-wing
bloc.
Frederiksen is using that reality to nudge voters towards supporting her. “If
[Rasmussen] chooses to back another prime minister, then we will, with a very
high possibility, get a right-wing government in Denmark,” she said recently.
METTE DOESN’T DEFINE ME
For the past four years, Frederiksen’s Social Democrats have governed in
coalition with Venstre and Rasmussen’s Moderates — the latter named after a
fictional political group in the hit Danish political drama, “Borgen.”
The government’s right-leaning policies on migration, which are among the most
hardline in Europe, and the lack of action on issues like the housing crisis
were cited as key factors in the Social Democrats’ disastrous results in
December’s nationwide municipal elections.
In the wake of those votes, members of the party’s base called for Frederiksen
to recalibrate and prioritize working with left-leaning parties. But the prime
minister has kept her options open ahead of March 24, saying she can imagine a
repeat partnership with “the political middle” as easily as an alliance with the
left.
The latter option is firmly opposed by Rasmussen, who wants a repeat of centrist
governance. The politician led Venstre during two non-consecutive terms as prime
minister from 2009 to 2019, but following an election defeat broke away to found
the Moderates as an alternative to Denmark’s historic left-right political
offer.
Ahead of this week’s vote Rasmussen has ruled out facilitating a left-leaning
coalition, saying he won’t partner with the far-left Red-Green Alliance whose
support would be needed to make such a government viable.
He also insists he’s not aiming to usher the right into power, as Frederiksen
claims.
Danish Prime Minister Mette Frederiksen speaks to journalists ahead of a
European Council summit in Brussels, Belgium on March 19, 2026. | Jonathan
Raa/NurPhoto via Getty Images
“I will not be placed: I stand in the center, firmly, even when the winds blow,”
he wrote on Facebook March 19. “The job is to pull together what is otherwise
falling apart — because we already have plenty of forces pulling us in different
directions.”
THE GOAT
Rasmussen has been an omnipresent figure in Danish politics for 40 years.
In 1986, at 22, he became chairman of Venstre’s youth wing, kickstarting his
political career. Since then he’s held multiple cabinet portfolios including
finance, health, interior, foreign affairs and prime minister.
In recent years he has leaned into his status as a meme on social media, where
he is celebrated for his playful demeanor and unabashed chain-smoking. His
insouciance and pragmatism — which extends to using hand soap to brush his teeth
when toothpaste is unavailable — strikes a chord with Danes, especially amid a
tense election.
At the same time Poulsen and Frederiksen were dueling it out in a televised
debate, Rasmussen uploaded a photo of himself with a goat on Instagram; the
caption wished luck to the leaders of Denmark’s two biggest parties. The post
referenced the term “greatest of all time” (GOAT) at a moment when his electoral
opponents had the spotlight.
In the comment section under the entry, users posted goat emojis and echoed the
GOAT label.
A SHOCK ENDGAME
Even though Frederiksen’s Social Democrats are projected to win the most votes,
Rasmussen asks why they should get to decide who takes the post of prime
minister, per parliamentary tradition.
“It’s a bit strange that the Social Democrats have never experienced sitting in
government without having the post of prime minister,” he said recently. “I
think they should experience that one day.”
Despite having already held the crown twice himself, the leader of the Moderates
isn’t opposed to becoming prime minister again. Some Danish political analysts
say the scenario isn’t impossible.
“If the election result is as messy as current polls suggest, and if neither the
traditional blue nor red bloc has a majority without the Moderates, could a
scenario emerge in which [Rasmussen] would and could go for the prime minister’s
job himself?” public channel DR’s political correspondent Christine Cordsen
posited. “There is no doubt that if the opportunity arises, he will go for it.”
It wouldn’t be without precedent. In 1968 Hilmar Baunsgaard became Danish prime
minister despite leading the smallest party in the governing coalition.
Although Rasmussen admits he can’t imagine a government “where that would
happen,” he also hasn’t rejected the idea of serving a third term as PM.
“Rule it out entirely? That would be a strangely weak position to put yourself
in when you’re the GOAT, right?”
Slovenian Prime Minister Robert Golob’s liberals lead by a narrow margin in
Sunday’s national election over former right-wing populist leader Janez Janša,
according to exit polls.
The preliminary results show Golob’s governing Freedom Movement party securing
29.9 percent of the vote, good for 30 seats in the country’s 90-seat chamber,
ahead of Janša’s conservative Slovenian Democratic Party (SDS) on 27.5 percent,
equaling 27 seats. If those results hold, it would represent a substantial step
back for Golob’s party, which won 41 seats in the last election in 2022.
The Slovenian vote has been seen as a mood-check of the bloc’s electorate, with
the EU tilting right since the 2024 European Parliament elections gave a boost
to right-wing populist parties. A nationalist-populist government took power in
the Czech Republic last year, adding to a pro-Moscow bloc that includes Slovakia
and Hungary, while the far-right RN leads polling in France ahead of key 2027
presidential elections.
If Janša, who has expressed admiration for U.S. President Donald Trump, were to
lead the country again, it would give Hungarian Prime Minister Viktor Orbán
another ally in the European Council.
In remarks Sunday night at his party headquarters, Janša said the results show
Slovenia has two choices: Either the incumbent liberal-left coalition could
continue to govern, or a new right-wing coalition under SDS could take the
reins.
LIBERALISM VS. ILLIBERALISM
Slovenes went to the polls after a dramatic campaign that in its final
stretch was less about bread-and-butter issues than allegations of election
interference.
Janša, a veteran politician who has served multiple terms as prime minister,
campaigned on lower taxes and stronger governance, while Golob sought to frame
the election in an interview with POLITICO as a choice
between liberal democratic values and Janša’s Hungary-style illiberalism.
Leaked audio and video recordings published earlier this month and apparently
designed to tie Golob’s government to corruption showed prominent Slovenian
figures, including a former minister, apparently discussing illegal lobbying and
the misuse of state funds.
Slovenian authorities said Israeli private intelligence firm Black Cube had
carried out illegal surveillance and wiretapping and has visited SDS
headquarters in December. Janša acknowledged he had been in contact with a
figure linked to the firm, but denied hiring them to dig up dirt on the
government.
In a letter sent earlier this week and obtained exclusively by POLITICO, Golob
urged European Commission President Ursula von der Leyen to investigate the
alleged election interference, calling it “a clear hybrid threat against the
European Union.”
Both parties sought to turn the scandal to their advantage ahead of the vote,
with the SDS arguing the recordings were proof of high-level corruption while
Golob’s supporters said it was evidence Janša was willing to collaborate with
foreign entities to retake power.
The political row spilled over into Brussels, with the European People’s
Party group, to which Janša’s party belongs, pushing last week for a European
Parliament hearing on fresh allegations that Slovenia’s EU commissioner, Marta
Kos — who hails from Golob’s party — had collaborated with Yugoslavia’s secret
police decades ago.
Kos has denied the claims, and an official close to her cabinet described the
accusations to POLITICO as politically motivated.
The first official results of Sunday’s election will be declared later in the
evening.
Ali Walker contributed to this report.
Biotechnology is central to modern medicine and Europe’s long-term
competitiveness. From cancer and cardiovascular disease to rare conditions, it
is driving transformative advances for patients across Europe and beyond . 1
Yet innovation in Europe is increasingly shaped by regulatory fragmentation,
procedural complexity and uneven implementation across m ember s tates. As
scientific progress accelerates, policy frameworks must evolve in parallel,
supporting the full lifecycle of innovation from research and clinical
development to manufacturing and patient access.
The proposed EU Biotech Act seeks to address these challenges. By streamlining
regulatory procedures, strengthening coordination and supporting scale-up and
manufacturing, it aims to reinforce Europe’s position in a highly competitive
global biotechnology landscape .2
Its success, however, will depend less on ambition than on delivery. Consistent
implementation, proportionate oversight and continued global openness
will determine whether the a ct translates into faster patient access,
sustained investment and long-term resilience.
Q: Why is biotechnology increasingly seen as a strategic pillar for Europe’s
competitiveness, resilience and long-term growth?
Gilles Marrache, SVP and regional general manager, Europe, Latin America, Middle
East, Africa and Canada, Amgen: Biotechnology sits at the intersection of
health, industrial policy and economic competitiveness. The sector is one of
Europe’s strongest strategic assets and a leading contributor to research and
development growth . 3
At the same time, Europe’s position is under increasing pressure. Over the past
two decades, the EU has lost approximately 25 percent of its global share of
pharmaceutical investment to other regions, such as the United States and
China.
The choices made today will shape Europe’s long-term strength in the sector,
influencing not only competitiveness and growth, but also how quickly patients
can benefit from new treatments.
> Europe stands at a pivotal moment in biotechnology. Our life sciences legacy
> is strong, but maintaining global competitiveness requires evolution .” 4
>
> Gilles Marrache, SVP and regional general manager, Europe, Latin America,
> Middle East, Africa and Canada, Amgen.
Q: What does the EU Biotech Act aim to do and why is it considered an
important step forward for patients and Europe’s innovation ecosystem?
Marrache: The EU Biotech Act represents a timely opportunity to better support
biotechnology products from the laboratory to the market.
By streamlining medicines’ pathways and improving conditions for scale-up and
investment, it can help strengthen Europe’s innovation ecosystem and accelerate
patient access to breakthrough therapies. These measures will help anchor
biotechnology as a strategic priority for Europe’s future — and one that can
deliver earlier patient benefit — so long as we can make it work in practice.
Q: How does the EU Biotech Act address regulatory fragmentation, and where will
effective delivery and coordination be most decisive?
Marrache: Regulatory fragmentation has long challenged biotechnology development
in Europe, particularly for multinational clinical trials and innovative
products. The Biotech Act introduces faster, more coordinated trials, expanded
regulatory sandboxes and new investment and industrial capacity instruments.
The proposed EU Health Biotechnology Support Network and a u nion-level
regulatory status repository would strengthen transparency and
predictability. Together, these measures would support earlier regulatory
dialogue, help de-risk development and promote more consistent implementation
across m ember s tates.
They also create an opportunity to address complexities surrounding combination
products — spanning medicines, devices and diagnostics — where overlapping
requirements and parallel assessments have added delays.5 This builds on related
efforts, such as the COMBINE programme,6 which seeks to streamline the
navigation of the In Vitro Diagnostic Regulation , 7 Clinical Trials Regulation8
and the Medical Device Regulation9 through a single, coordinated assessment
process.
Continued clarity and coordination will be essential to reduce duplication and
accelerate development timelines .10
Q: What conditions will be most critical to support biotech
scale-up, manufacturing and long-term investment in Europe?
Marrache: Europe must strike the right balance between strategic autonomy and
openness to global collaboration. Any new instruments under the Biotech Act
mechanisms should remain open and supportive of all types of biotech
investments, recogni z ing that biotech manufacturing operates through globally
integrated and highly speciali z ed value chains.
Q: How can Europe ensure faster and more predictable pathways from scientific
discovery to patient access, while maintaining high standards of safety and
quality?
Marrache: Faster and more predictable patient access depends on strengthening
end-to-end pathways across the lifecycle. The Biotech Act will help ensure
continuity of scientific and regulatory experti z e, from clinical development
through post-authori z ation. It will also support stronger alignment with
downstream processes, such as health technology assessments, which are
critical to success.
Moreover, reducing unnecessary delays or duplication in approval processes can
set clearer expectations, more predictable development timelines and earlier
planning for scale-up.
Gilles Marrache, SVP and regional general manager, Europe, Latin America,
Middle East, Africa and Canada, Amgen. Via Amgen.
Finally, embedding a limited number of practical tools (procedural, digital or
governance-based) and ensuring they are integrated within existing European
Medicines Agency and EU regulatory structures can help achieve faster
patient access . 11
Q: What role can stronger regulatory coordination, data use and public - private
collaboration play in strengthening Europe’s global position in biotechnology?
Marrache: To unlock biotechnology’s full potential, consistent implementation is
essential. Fragmented approaches to secondary data use, divergent m ember
state interpretations and uncertainty for data holders still limit access to
high-quality datasets at scale. The Biotech Act introduces key building blocks
to address this.
These include Biotechnology Data Quality Accelerators to improve
interoperability, trusted testing environments for advanced innovation, and
alignment with the EU AI Act ,12 European Health Data Space13 and wider EU data
initiatives. It also foresees AI-specific provisions and clinical trial guidance
to provide greater operational clarity.
Crucially, these structures must simplify rather than add further layers of
complexity.
Addressing remaining barriers will reduce legal uncertainty for AI deployment,
support innovation and strengthen Europe’s competitiveness.
> These reforms will create a moderni z ed biotech ecosystem, healthier
> societies, sustainable healthcare systems and faster patient access to the
> latest breakthroughs in Europe .” 14
>
> Gilles Marrache, SVP and regional general manager, Europe, Latin America,
> Middle East, Africa and Canada, Amgen.
Q: As technologies evolve and global competition intensifies, how can
policymakers ensure the Biotech Act remains flexible and future-proof?
Marrache: To remain future-proof, the Biotech Act must be designed to evolve
alongside scientific progress, market dynamics and patient needs. Clear
objectives, risk-based requirements, regular review mechanisms and timely
updates to guidance will enhance regulatory agility without creating unnecessary
rigidity or administrative burden.
Continuous stakeholder dialogue combined with horizon scanning will be essential
to sustaining innovation, resilience and timely patient access over the long
term. Preserving regulatory openness and international cooperation will be
critical in avoiding fragmentation and maintaining Europe’s credibility as a
global biotech hub.
Q: Looking ahead, what two or three priorities should policymakers focus on to
ensure the EU Biotech Act delivers meaningful impact in practice?
Marrache: Looking ahead, policymakers should focus on three priorities for the
Biotech Act:
First, implementation must deliver real regulatory efficiency, predictability
and coordination in practice.
Second, Europe must sustain an open and investment-friendly framework that
reflects the global nature of biotechnology.
And third, policymakers should ensure a clear and coherent legal framework
across the lifecycle of innovative medicines, providing certainty for the use
of artificial intelligence — as a key driver of innovation in health
biotechnology.
In practical terms, the EU Biotech Act will be judged not by the number of new
instruments it creates, but by whether it reduces complexity, increases
predictability and shortens the path from scientific discovery to patient
benefit.
An open, innovation-friendly framework that is competitive at the global level
will help sustain investment, strengthen resilient supply chains and deliver
better outcomes for patients across Europe and beyond.
--------------------------------------------------------------------------------
References
1. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/media/press-releases/2025/05/The_EU_Biotech_Act_Unlocking_Europes_Potential
2. European Commission, Proposal for a Regulation to establish measures to
strengthen the Union’s biotechnology and biomanufacturing sectors, December
2025. Retrieved from
https://health.ec.europa.eu/publications/proposal-regulation-establish-measures-strengthen-unions-biotechnology-and-biomanufacturing-sectors_en
3. EFPIA, The pharmaceutical sector: A catalyst to foster Europe’s
competitiveness, February 2026. Retrieved from
https://www.efpia.eu/media/zkhfr3kp/10-actions-for-competitiveness-growth-and-security.pdf
4. The Parliament, Investing in healthy societies by boosting biotech
competitiveness, November 2024. Retrieved from
https://www.theparliamentmagazine.eu/partner/article/investing-in-healthy-societies-by-boosting-biotech-competitiveness#_ftn4
5. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/docs/BiotechPP_final_digital_version_May_2025.pdf
6. European Commission, combine programme, June 2023. Retrieved from
https://health.ec.europa.eu/medical-devices-topics-interest/combine-programme_en
7. European Commission. Medical Devices – In Vitro Diagnostics, March 2026.
Retrieved from
https://health.ec.europa.eu/medical-devices-vitro-diagnostics_en
8. European Commission, Clinical trials – Regulation EU No 536/2014, January
2022. Retrieved from
https://health.ec.europa.eu/medicinal-products/clinical-trials/clinical-trials-regulation-eu-no-5362014_en
9. European Commission, Simpler and more effective rules for medical devices –
Commission proposal for a targeted revision of the medical devices
regulations, December 2025. Retrieved from
https://health.ec.europa.eu/medical-devices-sector/new-regulations_en#mdr
10. Amgen Europe, The EU Biotech Act Unlocking Europe’s Potential, May 2025.
Retrieved from
https://www.amgen.eu/docs/BiotechPP_final_digital_version_May_2025.pdf
11. AmCham, EU position on the Commission Proposal for an EU Biotech Act
12. European Commission, AI Act | Shaping Europe’s digital future, June 2024.
Retrieved from
https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
13. European Commission, European Health Data Space, March 2025. Retrieved from
https://health.ec.europa.eu/ehealth-digital-health-and-care/european-health-data-space-regulation-ehds_en
14. The Parliament, Why Europe needs a Biotech Act, October 2025. Retrieved
from
https://www.theparliamentmagazine.eu/partner/article/why-europe-needs-a-biotech-act
--------------------------------------------------------------------------------
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Amgen Inc
* The ultimate controlling entity is Amgen Inc
* The political advertisement is linked to advocacy on the EU Biotech Act.
More information here.
BUDAPEST — Hungarian Prime Minister Viktor Orbán is facing the toughest election
of his 16-year rule, and U.S. President Donald Trump and his MAGA movement are
mobilizing to help him.
Polls suggest the Hungarian leader is currently trailing his former
ally-turned-challenger Péter Magyar, who has capitalized on voter frustration
over record inflation, economic malaise and a string of political scandals. With
Orbán’s dominance suddenly in question, Trump’s administration and leading MAGA
figures have moved to bolster the man they regard as their most dependable
ideological ally in Europe.
For MAGA luminaries, Orbán isn’t merely a partner — he’s an inspiration. His
hardline stance on migration, his battles against universities and “woke”
cultural institutions, his hostility toward Brussels and skepticism toward
Ukraine have long been held up as a governance model by American conservatives.
“We were Trump before Trump,” boasts the website of the Conservative Political
Action Conference (CPAC) in Budapest. And in June 2024, U.S. Vice President JD
Vance openly tipped his hat to Orbán, saying the Hungarian prime minister had
“made smart decisions that we could learn from in the U.S.”
And learn they have. “We have entered the policy-writing system of Trump’s team.
We have deep involvement there,” bragged Orbán at a rally in Hungary during the
2024 White House race. Hungarian government and pro-Orbán think tanks, such as
the Századvég Foundation and the Danube Institute, have also had a long ongoing
relationship with Trump-aligned think tanks like the Heritage Foundation,
sharing research, ideas and scholars.
Above all, the U.S. president’s allies praise Orbán not just for his policies
but for his steadfastness in contrast to other MAGA-friendly politicians — like
Italian Prime Minister Giorgia Meloni, whom they dismiss for supporting Ukraine
and for her willingness to work with former President Joe Biden between Trump’s
two terms. “Orbán went out of his way to remain loyal to Donald Trump when he
was out of power and written off politically,” said Benjamin Harnwell, the
right-hand man of former Trump strategist Steve Bannon.
And in June 2024, U.S. Vice President JD Vance openly tipped his hat to Orbán,
saying the Hungarian prime minister had “made smart decisions that we could
learn from in the U.S.” | Pool photo by Matt Rourke/Getty Images
And now MAGA is returning the favor by pulling out the stops for the man Trump
once described in a lengthy social media post as “a truly strong and powerful
Leader … delivering phenomenal results” for Hungary.
On a recent visit to Budapest, U.S. Secretary of State Marco Rubio further
underlined Trump’s endorsement, saying U.S. ties with Hungary were entering a
“golden era” and promising financial support for the country if needed — but
only if Orbán remains in power. “President Trump is deeply committed to your
success, because your success is our success,” Rubio said.
This visit from Washington’s top diplomat shows just how seriously the
administration is taking Hungary’s April election. “For MAGA, the two most
important elections this year are those in Hungary and the midterms in the
United States,” said Timothy Ash of Britain’s Chatham House. And John
McLaughlin, a veteran Republican strategist who worked on all three of Trump’s
presidential campaigns, has been polling for Orbán.
This is all because a defeat for the Hungarian prime minister would be a blow to
the global populist movement, even as Washington ramps up support for other
like-minded political actors across Europe.
“It would be seen as an ideological or intellectual setback if he lost,” said
Frank Furedi, an Orbán ally who heads the Brussels branch of the Hungarian
government-backed Mathias Corvinus Collegium (MCC). “You have to remember that
Orbán plays a disproportionately influential role in terms of the outlook of
many of these parties and their leaders, who have a strong affection for him,”
he added. “I think a defeat would have an impact at least in the short term, in
terms of influencing continent-wide political dynamics.”
TRUMP CARD
Three weeks before the election, MAGA luminaries and national conservative and
populist stars from across Europe are all set to gather in the Hungarian capital
for a CPAC conference organized by the American Conservative Union — the fifth
one since 2022.
On a recent visit to Budapest, U.S. Secretary of State Marco Rubio further
underlined Trump’s endorsement. | János Kummer/Getty Images
Orbán is hoping the U.S. president will be in attendance.
Trump has a standing invitation to the event, and the Hungarian leader has made
no secret he’d like nothing more. But while Trump teased a visit in January, he
has so far remained noncommittal.
Shortly before heading to Washington for last month’s inaugural meeting of
Trump’s Board of Peace, Orbán reminded Hungarian radio the U.S. president “owes
him” a visit. Though, he acknowledged, “things are changing so rapidly that we
can’t plan even two weeks ahead.”
The U.S.-Israel war with Iran has only added to the uncertainty.
Orbán has so far discreetly endeavored to distance himself from the Middle East
war, delicately noting at a recent campaign rally that the president had sought
his opinion ahead of the bombing of Iran, “given we [Hungary] have relations
with Iran and friendly relations with Israel.”
He said that what’s happening isn’t what he’d advised, but added that the U.S.
leader and Chinese President Xi Jinping will discuss serious measures to
“stabilize the world’s state” when Trump visits Beijing, as he is expected to do
later this month.
Still, it’s unclear just how much MAGA’s support has actually aided the
Hungarian prime minister. There’s no evidence that Rubio’s visit shifted opinion
polls, noted Chatham House’s Ash. In fact, a subsequent poll published after his
visit suggested Hungary’s center-right opposition widened its lead in February.
Shortly before heading to Washington for last month’s inaugural meeting of
Trump’s Board of Peace, Orbán reminded Hungarian radio the U.S. president “owes
him” a visit. | Harun Ozalp/Anadolu via Getty Images
Meanwhile, as Orbán has sought to portray the election as a referendum on the
war in Ukraine and paint his challenger as a Brussels stooge, Magyar has
successfully shifted the conversation to bread-and-butter issues.
His Tisza party currently enjoys a nine-point lead over Orbán’s Fidesz party,
according to POLITICO’s Poll of Polls, and it has done this by channeling anger
over inflation and economic mismanagement. Long vulnerable to external shocks,
the Hungarian forint has come under renewed pressure following the recent
geopolitical turmoil in the Middle East, and this has raised fears of higher
energy prices and another inflationary spike, just as price growth had begun to
cool.
There’s also little agreement among commentators as to what extent further MAGA
reinforcement — or even a visit from Trump — could rally support for Orbán. “I
think it will fire up his supporters and firm up his existing voter base.
Whether it makes any difference to anybody else or convinces people to vote one
way or the other is an open question,” Furedi said.
Trump isn’t in the habit of investing political capital in causes he believes
are doomed. So, if Hungary’s polls continue to point toward an Orbán defeat, and
the prime minister fails to regain momentum in his campaign’s final stretch, he
may discover there are limits to how far — and how long — the U.S. president is
prepared to go, even for a one of MAGA’s most celebrated international allies.
Across Europe, governments are moving quickly to harness the potential of
artificial intelligence (AI). National strategies are being announced,
innovation hubs funded and pilot programs launched. From healthcare to taxation,
I have seen how AI is emerging as a powerful lever to enhance public services
and safeguard digital resilience.
Europe’s population is aging and economic pressure is being felt across the
continent. At the same time, citizens expect faster, simpler services. In this
context, departments are looking for targeted AI uses that reduce manual
workload and improve service quality without adding risk or cost.
> In order for AI to add value to an organization, it needs up‑to‑date data,
> clear ownership and simple routes to information sharing across teams.
However, progress is uneven. Many organizations are still at the trial stage.
Capgemini research shows that nearly 90 percent plan to explore, pilot or
implement agentic AI within the next two to three years, while EU institutions
and member states are committing billions to digital transformation centered
around AI. Only 21 percent of public sector organizations have advanced beyond
experimentation to pilots or actual deployment of generative AI.
The practical blocker is not enthusiasm: it is whether data is accurate, shared
when needed and safe to use.
A reality check for AI maturity
In order for AI to add value to an organization, it needs up‑to‑date data, clear
ownership and simple routes to information sharing across teams. Less than one
in four organizations globally report high maturity in these fields.
For civil servants, this often translates into small teams juggling operational
delivery with transformation agendas, learning new tools on the job and managing
risk without clear playbooks.
> More than half of public sector organizations are concerned about AI
> sovereignty, which is becoming central to safeguarding digital resilience.
This gap matters. AI initiatives built on fragile data foundations may face
risks such as inefficiency, bias and security vulnerabilities, which can erode
trust in automated decisions, both internally and with citizens. Strengthening
public sector data is therefore not only key to enabling AI, but also essential
for improving the accuracy, efficiency and reliability of government
decision-making.
Getting the basics right also helps deliver ‘once‑only’ service patterns so
citizens no longer need to repeatedly provide the same information to different
authorities. By creating greater interoperability and portability, governments
can reduce lock-in and strengthen long-term resilience.
The readiness gap
Europe is not lacking in ambition. Progress is underway, but common challenges
remain; data silos between agencies, varying quality standards, unclear
governance for data sharing and legacy systems that limit interoperability.
Cultural hesitancy toward data-driven decision-making adds complexity, but it is
not insurmountable.
The good news is that these issues can be addressed with a strategic focus on
data foundations and practical steps that reflect how government works: small,
safe changes; clear owners; and visible benefits to users and staff. When data
is accessible, trusted, and well managed, civil servants can share information
confidently, driving innovation while maintaining compliance and security.
> Setting clear targets, aligning strategy with operational reality, and
> encouraging collaboration and shared behaviors across teams helps embed data
> use into everyday work rather than treating it as an added burden.
Through engagement with industry and public-sector stakeholders, I see growing
momentum around these priorities and an opportunity for Europe to lead the way
in scaling AI responsibly to deliver smarter, more efficient public services for
citizens.
Building the foundations of public sector AI
Governments cannot buy their way into AI readiness, but can work to build it
through sustained investment in four interconnected pillars.
First, data sharing. Solving complex public sector challenges with AI depends on
information flowing safely across organizational boundaries. In practice, this
means making it easier for departments and agencies to reuse data that already
exists. While most public sector organizations have initiatives underway, only
35 percent have rolled out or fully deployed data-sharing methods.
Second, data control and sovereignty. Concerns about compliance and control are
a daily reality for public sector leaders, and they are slowing AI adoption.
More than half of public sector organizations are concerned about AI
sovereignty, which is becoming central to safeguarding digital resilience.
Compliance with data-localization laws and control over sensitive information
become more complex when AI services are hosted in foreign jurisdictions. A 2024
European Commission report found that 80 percent of Europe’s digital
technologies and infrastructure are imported.
Third, a data-driven culture. This is a critical pillar of AI readiness. Setting
clear targets, aligning strategy with operational reality, and encouraging
collaboration and shared behaviors across teams helps embed data use into
everyday work rather than treating it as an added burden.
Fourth, data infrastructure. Robust, cloud-based data infrastructure is
essential for storing, processing and analyzing data at scale, while respecting
sovereignty requirements. Today, the lack of such infrastructure is the primary
obstacle to effective data use. Only 41 percent of public sector executives say
they can access data at the speed required for decision-making. Budget
constraints are a real barrier, but they need not be paralyzing. By focusing on
gradual, outcome-driven improvements rather than costly overhauls, organizations
can demonstrate value and realize business outcomes.
Public sector organizations such as the City of Tampere illustrate this
four-pillar approach. By building data foundations gradually and strategically,
while addressing data sharing, sovereignty, culture and infrastructure together,
Tampere has shown how thoughtful investment can deliver tangible results without
losing sight of long-term ambition.
Achieving digital maturity
AI can transform the public sector, but only if data readiness becomes the true
measure of digital maturity.
With sustained focus on governance, interoperability, culture, and
infrastructure, governments can start to turn ambition into impact and deliver
smarter, more trusted public services for every citizen.
As European health systems grapple with how to deliver increasingly advanced
therapies, rare disease patients in Sweden still face everyday challenges — from
securing a diagnosis to accessing appropriate care. Although rights are strong
on paper, families often find themselves stitching together services across a
decentralized system.
Ågrenska is a national competence center in Sweden working to bridge those gaps.
It supports people with rare diagnoses and their families in navigating health
and social services. “But there’s a limit to what one organization can do,” says
Zozan Sewger Kvist, Ågrenska’s CEO. POLITICO Studio spoke with her about where
the Swedish system falls short and what must change across Europe to ensure
patients are not left behind.
POLITICO Studio: From Ågrenska’s experience working with families of rare
disease patients across Sweden, where does the system most often break down?
Zozan Sewger Kvist: For 25 years the families have been telling us the same
thing: the system doesn’t connect.
Zozan Sewger Kvist, CEO, Ågrenska
The breakdown is most evident in health care, especially when transitioning from
pediatric to adult care. But it also happens when patients are transitioning
between schools, social services and medical teams. No one is looking at their
care from a holistic point of view. Families become their own project managers.
They are the ones booking appointments, chasing referrals, explaining the
diagnosis again and again. It’s a heavy burden.
That’s largely why our organization exists. We provide families with the
knowledge, networks and tools to navigate the system and understand their
rights. But there’s a limit to what one organization can do. In a perfect world,
these functions would already be embedded within public care.
> Without clear national coordination, it becomes much harder to monitor whether
> families are actually receiving the support they are entitled to.
PS: Access to rare disease care varies widely within many European countries and
Sweden is no exception. In practical terms, what do those regional disparities
look like?
ZSK: Swedish families have the same rights across the country, but regional
priorities differ. That leads to unequal access in practice. For example, areas
with university hospitals tend to have stronger specialist networks and
rehabilitation services. In more rural parts of the country, especially in the
north, it is harder to attract expertise, and families feel that gap directly.
In practical terms, that can mean something as basic as access to
rehabilitation. In some regions, children receive coordinated physiotherapy,
speech therapy and follow-up. In others, families struggle to access
rehabilitation at all. And that’s a big issue because a lot of Sweden’s health
care runs through rehabilitation — without it, referrals to other services and
treatments can stall.
PS: Would a comprehensive national rare disease strategy meaningfully change
outcomes across regions?
ZSK: The problem is compliance, not regulation. Sweden has strong rules but
regions have almost full freedom to organize care, which makes consistency
difficult. As it stands, without clear national coordination, it becomes much
harder to monitor whether families are actually receiving the support they are
entitled to.
A national rare disease strategy would not solve everything but it would set
expectations such as what the minimum level of care should look like, what
coordination should include and how outcomes are followed up.
A draft national strategy was developed in 2024, and there was real momentum.
Patient organizations, health care experts and the government were all involved.
Everyone was optimistic the framework would provide guidance and accountability.
After some delays, work on the national strategy has resumed, so hopefully we
will see it implemented soon.
> Families often feel they need to take on a coordinating role themselves. They
> describe an endless search — calling clinics, repeating their story, trying to
> connect the dots.
PS: Families often describe a long and fragmented path to diagnosis. Where does
that journey tend to go wrong, and what would shorten it most?
ZSK: Coordinated multidisciplinary teams would make the biggest difference —
teams that can look at the whole condition, not just one symptom at a time.
The challenge is that rare diseases often affect multiple organ systems. Several
specialists may be involved, but they do not always work together, and it may
not be clear who is taking responsibility for the whole case. When no one holds
that overview, delays multiply.
Sweden also lacks a fully integrated national health record system, so
specialists may be looking at different pieces of the same case without seeing
the full picture. Families often feel they need to take on a coordinating role
themselves. They describe an endless search — calling clinics, repeating their
story, trying to connect the dots.
PS: Sweden participates in the European Reference Networks, yet you’ve suggested
they’re underused. What’s missing in how Sweden leverages that expertise?
ZSK: The ERNs are a strong, established framework for connecting specialists
across borders. Swedish experts participate, but we are not using that structure
to its full potential. Participation often appears project-based rather than
long-term. Neighboring countries such as Norway, Denmark and Finland are more
proactive in leveraging these collaborations.
I would like to see Sweden invest more in turning these networks into durable
partnerships that support clinical practice — not just research initiatives.
> Rare disease care needs sustained political and financial follow-through.
> Without that, families will continue to carry burdens that the system should
> be managing.
PS: Sweden often falls behind other EU countries in terms of access to orphan
medicines (drugs that treat rare diseases). What needs to change in Sweden’s
approach to ensure patients aren’t left behind?
ZSK: Families are very aware of how access compares across Europe. They follow
these discussions closely, and when a treatment is available in one country but
not another, it is difficult for them to understand why.
In Sweden, reimbursement decisions often come down to cost-effectiveness
calculations. That makes access an ethical as well as an economic question. But
for a family, it is hard to accept that a few additional years of life or
stability are weighed against a financial threshold.
Some families choose to cross borders for treatment. But that can be quite a
complex, expensive process, depending on the kind of treatment.
I think greater transparency and clearer communication about the criteria and
long-term impact — not only the immediate cost — would make difficult outcomes
easier to understand.
PS: You’ve worked with families for decades. Have things materially improved —
and what worries you most if reforms stall?
ZSK: Unfortunately, I cannot say that things have materially improved. When I
look back at the challenges families described 15 or 20 years ago, many of them
are still the same.
There have been some positive developments. Digital access means families are
more informed and can connect more easily with others in similar situations.
That has strengthened their voice.
But structurally, many of the underlying gaps remain. Rare disease care needs
sustained political and financial follow-through. Without that, families will
continue to carry burdens that the system should be managing.
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Alexion Pharmaceuticals
* The entity ultimately controlling the sponsor: AstraZeneca plc
* The political advertisement is linked to policy advocacy around rare disease
governance, funding, and equitable access to diagnosis and treatment across
Europe
More information here.
With a roar of rockets and bombs, a gasp of international outcry and the death
of Iran’s supreme leader, President Donald Trump’s legacy became clearer than
ever.
He is burying the 20th Century: Its villains, its alliances, its political norms
and ceasefires. And he is unleashing a future of uncertainty and disruption with
no new equilibrium in sight.
Across both his terms as president, and in so many different areas of policy and
governance and culture, his signal achievements have been acts of demolition.
His Supreme Court appointees struck down Roe v. Wade, ending the seething
political and legal stalemate on abortion rights that governed America since the
1970s.
His military interventions in Latin America have brought the Cuban government,
one of the last surviving Cold War regimes, to the brink of collapse.
His tariffs and trade threats have blown apart the Reagan-Clinton policy
consensus on free trade, upending half a century of global commercial
arrangements and diplomatic relations.
His America First worldview and contempt for Europe’s political establishment
have increasingly relegated NATO’s charter, the 1949 accord forging the globe’s
most powerful military alliance, to antique status.
His acts of corporate favoritism and personal enrichment, and his use of the
justice system as a weapon of vengeance, have erased the post-Watergate regime
of legal and ethical norms for the presidency.
And in the first few hours of war in Iran, Trump’s attack killed the enduring
leader of the 1979 Iranian revolution, Ali Khamenei, a dictator as cruel as he
was ancient.
In every instance, Trump’s allies and admirers say he is completing the
unfinished business of a generation: doing the work that other American leaders
have been too weak or too conventional or too unpatriotic to do themselves.
In each case, too, Trump is tearing down old structures and systems without a
vision for replacing them. At age 79, Trump is himself a creation of the age he
is now unwinding, with a worldview molded in America’s prosperous, socially
turbulent decades after World War II. It is not evident that he’s interested in
designing the grand policies of the future.
Even if Trump had a modernizer’s imagination, there is not too much time left
for him to build a new world. Trump has about 35 months left as president –
about as long as it takes to make one major motion picture – and just eight
months before a midterm election that could sap his power.
It is not likely that before he leaves office we will see a stable global trade
order, thriving new governments in Havana and Tehran or a post-NATO order of
international security that reflects America’s overdue destiny as a Pacific
nation.
It is harder, still, to imagine that Trump might help lead a hard process of
legislative compromise on other issues that have been intractable for decades,
like abortion or the national debt — though he may be the one president who
could force a grand bargain on immigration.
Trump’s opponents have often criticized him for his vacant sense of history: his
too-hasty dismissal of 20th Century achievements like NATO and NAFTA and START,
his middle school-level commentary on figures like Abraham Lincoln and Andrew
Jackson, his weird public musings about Frederick Douglass being recognized more
and more.
This philistinism and historical ignorance was at the heart of Joe Biden’s case
against Trump. Biden deplored Trump as an insult to the American political
tradition and promised to make Washington work, repair broken norms and turn
over power to the next generation. His slow-moving, self-admiring, politically
dysfunctional administration achieved none of these things.
If there was a chance then to build a bridge to the 20th Century, Biden lost it.
The next time the country chooses a replacement for Trump, resurrecting the past
won’t even be an option.
For American policymakers and voters, there’s no longer any prospect of
mimicking détente with regimes in Iran and Cuba that are unraveling at this very
hour. Barack Obama pursued that aim as part of his own 21st Century agenda; that
path is now closed for good.
America’s credibility as a trade negotiator and commercial partner is already
changed forever; the next president will be unable to restore Bush-era trade
relations even if he or she wants to. NATO’s place in the world won’t return to
where it was in 1998 just because the next president says the right words about
Washington’s commitment to its allies.
This is already obvious to leaders looking at the United States from the outside
in.
“We know the old order is not coming back,” Prime Minister Mark Carney of Canada
said at the World Economic Forum last month. His speech, declaring an epochal
“rupture” in geopolitics, was the climactic event of Davos for a reason.
Yet for all Trump’s zeal to crush big institutions and enemies and conventions
of the past, he has also failed so far to lock in an agenda for the future. Many
of his policies — on technology, energy and international security — can be
changed or undone with the stroke of a pen, as Biden’s were. Others, like
Trump’s landmark tax cuts, are unpopular and face a dim fate whenever Democrats
next win power. The variegated coalition that won the 2024 election for Trump,
and raised Republican hopes of a lasting realignment, fractured within months of
his inauguration.
If the 20th Century is finally dead, this country’s trajectory in the 21st is an
immense question mark.
That is the great challenge Trump has left for the next president. For a
visionary successor, it could also be an opportunity unmatched in recent U.S.
history.
Zoja Surroi is political advisor to the prime minister of Kosovo.
Prime Minister Albin Kurti’s second majority win in Kosovo shows it’s possible
to inspire through governance.
To understand how he won his second mandate, one has to understand why he won
his first — and that is the desire for change. To correct a political course
before it becomes irreversible and to move toward something better.
At the time, I was filled with such hope, watching the results from the Harvard
Kennedy School library, yet to join his cabinet. For decades, Kosovo — like much
of the Balkans — had succumbed to the cliches of the region: Corruption was
treated as inevitable, stability was prioritized over accountability, and the
implicit assumption was that it was naïve to expect more from a post-conflict
Balkan state than just free trade. But this felt genuinely new.
It seemed Kurti was in politics for the right reasons — and he had the past to
prove it. A former political prisoner under Serbian rule, he spent years in
opposition as one of the only credible voices speaking for true independence in
Kosovo.
And the promise he represented was different: prosperity, modernity,
non-corruption. The kind of politics that increases turnout and pulls back those
who had disengaged. Kosovo had declared independence, but it had never quite
received a fresh start — until then.
Kosovo became an independent country in the 21st century. Its political identity
has never been about settling for the crumbs of the 20th. And Kurti avoided the
fate of many first-term reformers because he delivered. Fulfilling the promises
you’ve set out for the people that count on you the most isn’t just the right
thing to do — it’s also good politics.
That mandate wasn’t built on spectacle or shiny mega-projects. It focused on the
unglamorous work of governance: building a non-corrupt government, expanding
social protection, making public higher education free and strengthening
government institutions.
These things don’t go viral, but they’re felt: Kosovo’s standing in
international transparency indices has markedly improved. The World Bank removed
Kosovo from its list of fragile and conflict-affected situations, and projected
it as the fastest-growing economy in its region. In Transparency International’s
Corruption Perceptions Index, Kosovo rose 28 places during Kurti’s tenure.
However, governing isn’t just about domestic reform, and Serbia remains the main
external complication. As Kosovo reached its adulthood as a state this month,
continued denial of its sovereignty looks increasingly anachronistic — and yet,
it persists. And while Kosovo remains firmly pro-EU, Serbia has leaned in the
opposite direction, deepening ties with Russia and tightening internal political
control.
This dynamic has real consequences: Belgrade’s influence over Kosovo’s Serb
minority — roughly 4 percent of the population, one-third of which is
concentrated around the north border — has worked against integration in the
country. Political pluralism has been constrained, with one party effectively
monopolizing the political field. And the dangers of this became brutally clear
with the armed attack in Banjska in September of 2023.
To that end, Kurti’s most ambitious — and controversial — policy has been his
effort to close institutional vacuums in the north by extending the reach of
Kosovo’s administrative authority. To some international partners, this appeared
hasty, and the EU responded with punitive measures it has now lifted. But for
many Kosovars, it was long overdue. Indeed, it’s difficult to convince a Kosovar
that the threat Serbia represents is overstated.
This is where Kurti’s victory takes on broader meaning. Whether in Kosovo or
elsewhere, politics requires the courage to move beyond the center. It rewards
those who stand for something — consistently and over time.
Kosovo today exceeds many of the expectations once placed upon it. Its success
is also the success of the U.S. and the EU, both of which helped shape its
post-war institutions and remain deeply popular among its citizens. The question
now isn’t if Kosovo belongs in the European project — it’s about Europe’s
willingness to uphold its own values.
BERLIN — A multibillion-euro German military drone contract has triggered
scrutiny inside Chancellor Friedrich Merz’s governing coalition over its most
prominent investor, Trump-friendly billionaire Peter Thiel, putting its approval
in doubt.
Thiel is at the center of a political controversy over his investment in Stark,
a Berlin-based defense-tech startup. German lawmakers question whether his
minority stake could give him direct or indirect influence over the company’s
decisions or access to sensitive defense information.
They have also raised concerns about how the contract is priced and structured,
saying key details on unit costs, quantities and optional volumes were redacted
from documents presented to the country’s parliament.
“The fact is that Peter Thiel openly rejects our democracy. We do not know how
large his influence at Stark is. And even worse: The federal government cannot
explain it,” Greens lawmaker Jeanne Dillschneider told POLITICO. “We need
drones, no one disputes that. But the question of how large Thiel’s influence is
must be clarified before we procure them.”
The Thiel Foundation, a private foundation set up by Peter Thiel and contacted
by POLITICO in an effort to seek a response, did not respond to emailed requests
for comment.
The confidential Stark contract, seen by POLITICO, is structured as a seven-year
framework agreement with an initial fixed order worth €268.6 million. If all
optional orders are exercised, the total value could rise to roughly €2.86
billion.
The agreement covers the serial production of “deployment sets,” each consisting
of 20 loitering munitions, a ground control station, spare parts and software
and training packages. It would be one of Germany’s first purchases of loitering
drones, which have become a low-cost weapon of choice in Ukraine after Russia’s
full-scale invasion.
It’s unclear what Thiel’s share in the company is. The German-born investor, who
is also an American citizen, is known for his support for President Donald Trump
and for bankrolling conservative candidates such as Vice President JD Vance,
aligning himself with the populist wing of the Republican party.
That has raised concerns among German lawmakers, affecting the outlook for
parliamentary approval of the deal.
Under German law, any defense contract exceeding €25 million must receive
explicit approval from the parliamentary budget committee, meaning a vote
scheduled for Wednesday is legally required for the deal to proceed.
Stark declined to comment on the details of its shareholder structure but said
any foreign investment exceeding a 10 percent threshold would trigger a
mandatory review by Germany’s Economy Ministry. The same applies below that
level if special rights exist, the company said, adding: “None of this
applies.”
It also stated that no shareholder has information rights relating to its
products and that any transfer of technical details would be subject to German
export control approval.
Boris Pistorius rejected the idea that Thiel’s involvement should stall the
deal. | Nicolas Tucat/AFP via Getty Images
Defense Minister Boris Pistorius rejected the idea that Thiel’s involvement
should stall the deal. Speaking to the Deutsche Welle broadcaster at the recent
Munich Security Conference, he said: “I don’t know whether my information is
correct or not, but as far as I’m informed, we are not talking about a key
stakeholder — we are talking about somebody who has between 3 and 4.5 percent.”
That, he added, means Thiel does not play “a key role as a stakeholder,” and
while the issue should be considered seriously, it is “not an obstacle really to
make contracts with that company.”
However, the final decision lies not with his ministry but with parliament.
COALITION SCRUTINY GROWS
While the Greens were the first to target Thiel’s involvement, criticism has
spilled over to Germany’s governing parties, the Christian Democrats and the
Social Democrats.
Budget lawmakers who spoke with POLITICO on the basis of anonymity to speak
candidly have since broadened their review to include pricing structures,
delivery timelines and the overall scale of the framework agreement’s optional
volumes.
A central point of scrutiny is timing: Berlin would be committing to serial
production before a full munitions safety qualification has been completed.
According to the contract, the qualification is expected by Sept. 30.
The agreement contains exit clauses allowing the government to withdraw if the
qualification fails, if performance benchmarks such as hit probability are not
met, or if changes in the company’s ownership create security concerns.
Lawmakers from both ruling coalition parties have also raised concerns after
portions of the Stark contract were redacted. In particular, details relating to
quantities and pricing were not fully visible to MPs. They say meaningful
oversight becomes difficult if key financial parameters are not fully disclosed.
“Responsibility does not mean rubber-stamping,” Christian Democratic budget
lawmaker Andreas Mattfeldt wrote on LinkedIn, alluding to further examination of
the procurement. “Responsibility means examining, questioning and, if necessary,
correcting. For a strong Bundeswehr [German armed forces] and a clean handling
of taxpayers’ money.”
In an explanatory memo to lawmakers seen by POLITICO, the Defense Ministry
outlines the overall contract structure and aggregate values but doesn’t provide
granular figures. It confirms that the initial fixed tranches amount to roughly
€270 million per supplier and that the total ceiling values — roughly €2.9
billion for Stark — would only apply if all optional orders are exercised.
Bloomberg first reported on the memo.
That document does not, however, directly address why specific passages were
withheld from committee review. That gap has added to frustration among some
coalition MPs ahead of the vote.
Lawmakers from Germany’s governing parties are now preparing a conditional
approval that would attach binding requirements to the contract before it takes
effect.
According to two officials familiar with the talks, budget lawmakers are
drafting language that would require closer oversight of pricing and limit how
the larger optional parts of the deal can be triggered. The move suggests the
contract is likely to pass, but not without new safeguards in response to
concerns raised inside the coalition.
Whether Stark clears the hurdle this week will determine not only the fate of
the contract, but also whether the coalition is prepared to close ranks behind
one of its most politically sensitive defense procurements.
Doepfner Capital, led by Moritz Döpfner, the son of Axel Springer CEO Mathias
Döpfner, is also an investor in Stark. Axel Springer owns POLITICO.