Mathias Döpfner is chair and CEO of Axel Springer, POLITICO’s parent company. America and Europe have been transmitting on different wavelengths for some time now. And that is dangerous — especially for Europe. The European reactions to the new U.S. National Security Strategy paper and to Donald Trump’s recent criticism of the Old Continent were, once again, reflexively offended and incapable of accepting criticism: How dare he, what an improper intrusion! But such reactions do not help; they do harm. Two points are lost in these sour responses. First: Most Americans criticize Europe because the continent matters to them. Many of those challenging Europe — even JD Vance or Trump, even Elon Musk or Sam Altman — emphasize this repeatedly. The new U.S. National Security Strategy, scandalized above all by those who have not read it, states explicitly: “Our goal should be to help Europe correct its current trajectory. We will need a strong Europe to help us successfully compete, and to work in concert with us to prevent any adversary from dominating Europe.” And Trump says repeatedly, literally or in essence, in his interview with POLITICO: “I want to see a strong Europe.” The transatlantic drift is also a rupture of political language. Trump very often simply says what he thinks — sharply contrasting with many European politicians who are increasingly afraid to say what they believe is right. People sense the castration of thought through a language of evasions. And they turn away. Or toward the rabble-rousers. My impression is that our difficult American friends genuinely want exactly what they say they want: a strong Europe, a reliable and effective partner. But we do not hear it — or refuse to hear it. We hear only the criticism and dismiss it. Criticism is almost always a sign of involvement, of passion. We should worry far more if no criticism arrived. That would signal indifference — and therefore irrelevance. (By the way: Whether we like the critics is of secondary importance.) Responding with hauteur is simply not in our interest. It would be wiser — as Kaja Kallas rightly emphasized — to conduct a dialogue that includes self-criticism, a conversation about strengths, weaknesses and shared interests, and to back words with action on both sides. Which brings us to the second point: Unfortunately, much of the criticism is accurate. Anyone who sees politics as more than a self-absorbed administration of the status quo must concede that for decades Europe has delivered far too little — or nothing at all. Not in terms of above-average growth and prosperity, nor in terms of affordable energy. Europe does not deliver on deregulation or debureaucratization; it does not deliver on digitalization or innovation driven by artificial intelligence. And above all: Europe does not deliver on a responsible and successful migration policy. The world that wishes Europe well looked to the new German government with great hope. Capital flows on the scale of trillions waited for the first positive signals to invest in Germany and Europe. For it seemed almost certain that the world’s third-largest economy would, under a sensible, business-minded and transatlantic chancellor, finally steer a faltering Europe back onto the right path. The disappointment was all the more painful. Aside from the interior minister, the digital minister and the economics minister, the new government delivers in most areas the opposite of what had been promised before the election. The chancellor likes to blame the vice chancellor. The vice chancellor blames his own party. And all together they prefer to blame the Americans and their president. Instead of a European fresh start, we see continued agony and decline. Germany still suffers from its National Socialist trauma and believes that if it remains pleasantly average and certainly not excellent, everyone will love it. France is now paying the price for its colonial legacy in Africa and finds itself — all the way up to a president driven by political opportunism — in the chokehold of Islamist and antisemitic networks. In Britain, the prime minister is pursuing a similar course of cultural and economic submission. And Spain is governed by socialist fantasists who seem to take real pleasure in self-enfeeblement and whose “genocide in Gaza” rhetoric mainly mobilizes bored, well-heeled daughters of the upper middle class. Hope comes from Finland and Denmark, from the Baltic states and Poland, and — surprisingly — from Italy. There, the anti-democratic threats from Russia, China and Iran are assessed more realistically. Above all, there is a healthy drive to be better and more successful than others. From a far weaker starting point, there is an ambition for excellence. What Europe needs is less wounded pride and more patriotism defined by achievement. Unity and decisive action in defending Ukraine would be an obvious example — not merely talking about European sovereignty but demonstrating it, even in friendly dissent with the Americans. (And who knows, that might ultimately prompt a surprising shift in Washington’s Russia policy.) That, coupled with economic growth through real and far-reaching reforms, would be a start. After which Europe must tackle the most important task: a fundamental reversal of a migration policy rooted in cultural self-hatred that tolerates far too many newcomers who want a different society, who hold different values, and who do not respect our legal order. If all of this fails, American criticism will be vindicated by history. The excuses for why a European renewal is supposedly impossible or unnecessary are merely signs of weak leadership. The converse is also true: where there is political will, there is a way. And this way begins in Europe — with the spirit of renewal of a well-understood “Europe First” (what else?) — and leads to America. Europe needs America. America needs Europe. And perhaps both needed the deep crisis in the transatlantic relationship to recognize this with full clarity. As surprising as it may sound, at this very moment there is a real opportunity for a renaissance of a transatlantic community of shared interests. Precisely because the situation is so deadlocked. And precisely because pressure is rising on both sides of the Atlantic to do things differently. A trade war between Europe and America strengthens our shared adversaries. The opposite would be sensible: a New Deal between the EU and the U.S. Tariff-free trade as a stimulus for growth in the world’s largest and third-largest economies — and as the foundation for a shared policy of interests and, inevitably, a joint security policy of the free world. This is the historic opportunity that Friedrich Merz could now negotiate with Donald Trump. As Churchill said: “Never waste a good crisis!”

Christian Lindner, Germany’s former finance minister, has long been passionate about cars. Now he’s taken on a key management role at a car dealership business. Lindner, the ex-leader of the car-friendly Free Democratic Party (FDP), a self-avowed car enthusiast known for driving a pricey vintage Porsche, announced he is taking a new position as deputy chairman of the board for Autoland AG, which calls itself Germany’s “largest auto discounter,” selling new and used cars. “Today, I want to be where the heart of the German economy beats,” Lindner wrote in an online post. “That it happens to be the automotive industry will not surprise anyone who knows my personal passions.” Autoland confirmed Lindner’s new role on Wednesday, saying he “will be responsible for marketing, sales, and digitalization.” Lindner served as finance minister in the troubled, three-party coalition government of previous Chancellor Olaf Scholz. Persistent conflicts over spending between Lindner’s fiscally conservative FDP and his left-leaning coalition partners led to the premature collapse of that government in late 2024, prompting an early federal election in February. During his time in office, Lindner pushed back against the EU’s planned phaseout of the combustion engine and was seen as close to the auto industry. In 2022, he was embroiled in a scandal over a text-message exchange with Porsche CEO Oliver Blume in which Lindner asked for “support with my arguments.” In the federal election earlier this year, Lindner’s FDP failed to reach the 5 percent threshold required for a party to make it into the Bundestag. He then stepped down as leader of the party, marking a stunning downfall for a politician once deemed by his peers to be a wunderkind of European fiscal conservatism. Under German law, former members of government have to report new private sector jobs for 18 months after leaving office. In cases involving potential conflicts of interest, the current government can disallow former officials from taking a job. German media poked fun at the former finance minister over his new job. “Christian Lindner joins the ranks of used car dealers,” ran the headline of a Spiegel article.

At New York Climate Week in September, opinion leaders voiced concern that high-profile events often gloss over the deep inequalities exposed by climate change, especially how poorer populations suffer disproportionately and struggle to access mitigation or adaptation resources. The message was clear: climate policies should better reflect social justice concerns, ensuring they are inclusive and do not unintentionally favor those already privileged.  We believe access to food sits at the heart of this call for inclusion, because everything starts with food: it is a fundamental human right and a foundation for health, education and opportunity. It is also a lever for climate, economic and social resilience.  > We believe access to food sits at the heart of this call for inclusion, > because everything starts with food This makes the global conversation around food systems transformation more urgent than ever. Food systems are under unprecedented strain. Without urgent, coordinated action, billions of people face heightened risks of malnutrition, displacement and social unrest.   Delivering systemic transformation requires coordinated cross-sector action, not fragmented solutions. Food systems are deeply interconnected, and isolated interventions cannot solve systemic problems. The Food and Agriculture Organization’s recent Transforming Food and Agriculture Through a Systems Approach report calls for systems thinking and collaboration across the value chain to address overlapping food, health and environmental challenges.   Now, with COP30 on the horizon, unified and equitable solutions are needed to benefit entire value chains and communities. This is where a systems approach becomes essential.  A systems approach to transforming food and agriculture  Food systems transformation must serve both people and planet. We must ensure everyone has access to safe, nutritious food while protecting human rights and supporting a just transition.   At Tetra Pak, we support food and beverage companies throughout the journey of food production, from processing raw ingredients like milk and fruit to packaging and distribution. This end-to-end perspective gives us a unique view into the interconnected challenges within the food system, and how an integrated approach can help manufacturers reduce food loss and waste, improve energy and water efficiency, and deliver food where it is needed most.   Meaningful reductions to emissions require expanding the use of renewable and carbon-free energy sources. As outlined in our Food Systems 2040 whitepaper,1 the integration of low-carbon fuels like biofuels and green hydrogen, alongside electrification supported by advanced energy storage technologies, will be critical to driving the transition in factories, farms and food production and processing facilities.   Digitalization also plays a key role. Through advanced automation and data-driven insights, solutions like Tetra Pak® PlantMaster enable food and beverage companies to run fully automated plants with a single point of control for their production, helping them improve operational efficiency, minimize production downtime and reduce their environmental footprint.  The “hidden middle”: A critical gap in food systems policy  Today, much of the focus on transforming food systems is placed on farming and on promoting healthy diets. Both are important, but they risk overlooking the many and varied processes that get food from the farmer to the end consumer. In 2015 Dr Thomas Reardon coined the term the “hidden middle” to describe this midstream segment of global agricultural value chains.2   This hidden middle includes processing, logistics, storage, packaging and handling, and it is pivotal. It accounts for approximately 22 percent of food-based emissions and between 40-60 percent of the total costs and value added in food systems.3 Yet despite its huge economic value, it receives only 2.5 to 4 percent of climate finance.4  Policymakers need to recognize the full journey from farm to fork as a lynchpin priority. Strategic enablers such as packaging that protects perishable food and extends shelf life, along with climate-resilient processing technologies, can maximize yield and minimize loss and waste across the value chain. In addition, they demonstrate how sustainability and competitiveness can go hand in hand.  Alongside this, climate and development finance must be redirected to increase investment in the hidden middle, with a particular focus on small and medium-sized enterprises, which make up most of the sector.   Collaboration in action  Investment is just the start. Change depends on collaboration between stakeholders across the value chain: farmers, food manufacturers, brands, retailers, governments, financiers and civil society.  In practice, a systems approach means joining up actors and incentives at every stage.5 The dairy sector provides a perfect example of the possibilities of connecting. We work with our customers and with development partners to establish dairy hubs in countries around the world. These hubs connect smallholder farmers with local processors, providing chilling infrastructure, veterinary support, training and reliable routes to market.6 This helps drive higher milk quality, more stable incomes and safer nutrition for local communities.  Our strategic partnership with UNIDO* is a powerful example of this collaboration in action. Together, we are scaling Dairy Hub projects in Kenya, building on the success of earlier initiatives with our customer Githunguri Dairy. UNIDO plays a key role in securing donor funding and aligning public-private efforts to expand local dairy production and improve livelihoods. This model demonstrates how collaborations can unlock changes in food systems.  COP30 and beyond  Strategic investment can strengthen local supply chains, extend social protections and open economic opportunity, particularly in vulnerable regions. Lasting progress will require a systems approach, with policymakers helping to mitigate transition costs and backing sustainable business models that build resilience across global food systems for generations to come.   As COP30 approaches, we urge policymakers to consider food systems as part of all decision-making, to prevent unintended trade-offs between climate and nutrition goals. We also recommend that COP30 negotiators ensure the Global Goal on Adaptation include priorities indicators that enable countries to collect, monitor and report data on the adoption of climate-resilient technologies and practices by food processors. This would reinforce the importance of the hidden middle and help unlock targeted adaptation finance across the food value chain.  When every actor plays their part, from policymakers to producers, and from farmers to financiers, the whole system moves forward. Only then can food systems be truly equitable, resilient and sustainable, protecting what matters most: food, people and the planet.  * UNIDO (United Nations Industrial Development Organization)  Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Tetra Pak * The ultimate controlling entity is Brands2Life Ltd * The advertisement is linked to policy advocacy regarding food systems and climate policy More information here. https://www.politico.eu/7449678-2

Small and medium-sized enterprises (SMEs) in Germany do not complain. They work. They adapt to external circumstances and are successful with their products against all odds. Many of them worldwide. This is the secret of their success. But the current economic situation gives cause for concern. We launched our DATEV SME Index a year ago. Our index provides up-to-date, fact-based and broad insights into German SMEs in a way that has not been available before: it is based on the advance VAT returns of more than one million SMEs and the payroll accounts of more than eight million employees. As an IT service provider for the tax consulting profession, this effectively lets us look directly into the engine room of German SMEs. But this detailed view is not very pleasant at the moment. The figures we publish each month based on data from tax advisors paint an almost worrying picture. The increase in the minimum wage that has already been decided is likely to exacerbate this situation for small and micro-enterprises. Sales are falling, wages are rising The German economy is in a difficult situation. Since September 2024, we have observed declining sales in SMEs. Concurrently, wages are increasing. Our latest statistics show that this trend is continuing — in all German federal states, industries and company sizes. There is currently no indication of a change in this trend. As previously described, SMEs rarely voice dissatisfaction. Instead, they seek pragmatic solutions. This challenging situation is no different. There are in fact a number of ways to resolve this issue. Many SMEs are looking to the federal government with high expectations. They expect it to pursue business-friendly policies to strengthen the backbone of the German economy. Small and medium-sized companies represent 99 percent of it and employ around half of the workforce in Germany. Without relief and incentives, the existence of many SMEs is increasingly at risk. Above all, we need to reduce bureaucracy and implement a bureaucracy moratorium: meaning the standardization and reduction of documentation and retention requirements. > Above all, we need to reduce bureaucracy and implement a bureaucracy > moratorium: meaning the standardization and reduction of documentation and > retention requirements. Financial incentives for greater productivity The regulatory frenzy of recent decades in Germany and in the EU makes it difficult for companies to catch their breath. It not only costs SMEs time and money, but it also hinders innovation. But there are now initial indications that something is being done about this. The importance and necessity to modernize the administration has been recognized and will be supported financially. A separate ministry for digital transformation and state modernization is a positive first step. > The German government has also already decided on the so-called investment > booster. However, this will only help to a limited extent The German government has also already decided on the so-called investment booster. However, this will only help to a limited extent. The investment booster allows for declining balance depreciation of up to 30 percent, which enables companies to write off higher amounts, especially in the first few years. This is intended to accelerate investment and secure liquidity for businesses. However, this only helps if there is still enough substance or capital available for further financing. And in many cases, this is no longer the case for SMEs. In order to boost productivity, financial incentives must be provided as quickly as possible. It is our hope that there will be extensive investments in infrastructure and the digitalization of administration as well. Artificial intelligence creates greater efficiency Another encouraging sign: new technological advancements facilitate operations for business. Artificial intelligence (AI) is more than just a buzzword. As Germany’s second largest software company, we are dedicated to developing innovative products and solutions for tax firms, so that they can provide even more exceptional counsel to their clients — mostly small and medium-sized businesses. For me, it is evident that AI will positively transform work in tax consulting firms, creating significant opportunities. AI helps to simplify monotonous, repetitive tasks, allowing for more efficient workflow. It is a valuable tool for supporting individuals rather than replacing them. This is especially important in a time of pressing issues such as skilled worker shortages. The use of AI thus also offers new opportunities for all companies that wish to prioritize their core business over bureaucracy. Digital and AI-supported processes with tax advisors will provide sustainable support in this. The acceptance and use of AI tools is steadily increasing in tax consulting firms. Among the most widely used industry-specific offerings, the DATEV appeal generator and specialist research tools are highly regarded. It is clear that we have only just begun to see the full extent of the situation. We are working every day on new solutions that make it easier for tax consulting firms to better advise their client companies to improve their successes. We also use our detailed knowledge that we generate from our DATEV SME Index. > The smart use of AI can also enhance the success of German SMEs and strengthen > their ability to compete globally — despite existing regulatory challenges, > bureaucratic hurdles and complicated tax systems. Ultimately, it depends on how we deal with the challenges in our daily work. How we successfully shape the path to the digital future with the possibilities offered by AI. We have learned from major American software providers over the past 20 years that those who best understand the data business enjoy great economic success. Now comes the second chance. The smart use of AI can also enhance the success of German SMEs and strengthen their ability to compete globally — despite existing regulatory challenges, bureaucratic hurdles and complicated tax systems. So, enough whining. Let’s proceed! Robert Mayr, tax advisor, auditor and doctor of business administration, is CEO of DATEV eG since 2016. From 2014 to 2016, he was on the board of the Nuremberg-based data processing cooperative, responsible for finance and purchasing, and had already been responsible for internal data processing and production since 2011. After studying business administration at Ludwig Maximilian University in Munich, he began his professional career as a consultant at Treuhandanstalt Berlin. Mayr worked for Deloitte from 1994 to 2001, after which he spent nine years as managing partner of Solidaris Revisions-GmbH in Munich. Since 2012, Mayr has been vice president of the Nuremberg Chamber of Tax Consultants. DATEV eG is a data processing cooperative with more than 850,000 customers. Founded in 1966, it now employs a staff of about 9,000, working at its headquarters in Nuremberg and 22 branch offices throughout Germany. Its legal structure as a cooperative guarantees continuity, meaning no investor can buy DATEV. For more information on the DATEV Small and Medium-Sized Enterprises Index, please visit mittelstandsindex.datev.de (in German).

LONDON — Keir Starmer on Friday unveiled plans to roll out government-issued digital ID across the U.K.   His initial pitch is clear: digital ID will help combat illegal working and curb one of the “pull factors” driving unauthorized migration to the U.K.   “You will not be able to work in the United Kingdom if you do not have digital ID,” Starmer said in a speech on Friday morning.  This emphasis on tackling illegal work echoes proposals for a so-called “BritCard” laid out by influential think tank Labour Together in June. The paper was co-authored by Kirsty Innes, now a special advisor to new Technology Secretary Liz Kendall.   Historically the idea of introducing national ID in the U.K. has proven politically difficult. A pilot scheme launched by Tony Blair’s government was scrapped by the Conservative-Liberal Democrat coalition in 2010. Conservative leader Kemi Badenoch called the idea a “desperate gimmick that will do nothing to stop the boats.” A Reform UK spokesperson said that digital ID would have little effect on illegal working, and that all it would do is “impinge further on the freedoms of law-abiding Brits.” Liberal Democrat leader Ed Davey said the plan would do “next to nothing to tackle channel crossings,” and that the Lib Dems will “fight against it tooth and nail — just as we successfully did against Tony Blair’s ID cards.” But the devil is in the details, many of which the government is yet to clarify.   WHAT WE KNOW All U.K. citizens and legal residents will need to produce digital ID to prove their Right to Work by the end of this Parliament (which means August 2029 at the very latest). The ID will sit on people’s phones, similar to a contactless card.  Like an eVisa or passport, the ID will include a person’s name, date of birth, nationality or residency status, and photo. Subject to forthcoming consultation — timeline TBD — other details, such as address, could also be added to the mix.   The government said there will be “no requirement for individuals to carry their ID or be asked to produce it.” But given it will be mandatory for anyone wanting to work in the U.K., it will be something millions of people will need to sign up for if they want to make a living.  While curbing illegal migration is the focus for now, the government has also said that “in time” digital ID will “make it simpler to apply for services like driving licenses, childcare and welfare, while streamlining access to tax records.”  The government also said the ID “will be available to use” for proving identity when voting in elections, and that it could also be used by private sector organizations, e.g. when setting up a bank account. The government has said the consultation would consider how digital ID would work for people who don’t have a smartphone.  WHAT WE DON’T KNOW In short, quite a lot.   The credentials will be government-issued and stored directly on people’s phones, but it’s unclear whether the system itself is to be developed in-house — as with the Government Digital Service’s OneLogin — or outsourced to the private sector.   We also don’t have much detail on the government’s plans to eventually make the digital ID a way of accessing welfare services, or which welfare services might be included. There’s no timeline on that part of the plan.  The Tony Blair Institute, another influential think tank, has pushed for a more holistic application of digital IDs. In a statement following Starmer’s speech, TBI Director of Government Innovation Policy Alexander Iosad said digital ID can “do so much more for our citizens” than just combat illegal migration.  “Imagine being pre-approved and notified about the services, benefits or tax breaks you’re entitled to, no more lengthy forms, no waiting, no more backdating. Issues in your community reported at a tap and tracking progress on those reports with complete transparency,” said Iosad. It’s not clear whether the government will pursue a TBI model for digital ID in time.  It’s also unclear whether physical documents would remain valid proof of identity. Migrant rights campaigners have long protested the Home Office’s transition to digital-only immigration status on grounds of inclusivity and reliability. 

When you live at the crossroads of East and West, energy is never just about electricity or gas. In the Republic of Moldova, high-voltage lines and pipelines have always carried more than power — they have carried geopolitics. For decades, this small country wedged between Romania and Ukraine found itself trapped in a web of vulnerabilities: dependent on Russian gas, tied to Soviet-era infrastructure and reliant on energy supplies from the breakaway Transnistrian region. Energy was less a utility than a lever of political blackmail.         And yet, in just a few years, Moldova has begun to flip the script. What was once the country’s greatest weakness has been turned into a project of sovereignty — and, crucially, a bridge to Europe.         A turning point in the crisis         The breaking point came in October 2021, when Gazprom slashed deliveries, prices exploded and Chișinău suddenly found itself staring at an energy abyss. Electricity was supplied almost entirely from the MGRES plant in Transnistria, itself hostage to Kremlin influence. By 2022 the situation worsened: gas supplies were halted altogether, MGRES cut the lights on the right bank of the Dniester and Moldova teetered on the edge of a blackout.         With coordinated support from the European Union — which helped Moldova overcome the crises, cushion the impact on consumers hit by soaring prices and committed further backing through instruments such as the Growth Plan for the Republic of Moldova — the country managed to stabilize the situation.              For many countries, such a crisis would have spelled capitulation. For Moldova, it became the start of something different: a choice between survival within the old dependency or a leap toward reinvention. > What was once the country’s greatest weakness has been turned into a project > of sovereignty — and, crucially, a bridge to Europe.         Reinvention with a European compass         Under a unified Pro-European leadership — President Maia Sandu, Prime Minister Dorin Recean and Energy Minister Dorin Junghietu — Moldova has embraced the latter path. In 2023 the Ministry of Energy was created not as another bureaucratic silo, but as an engine of transformation.         The strategy was clear: diversify supply, integrate with the European grid, liberalize markets and accelerate the green transition. Within months, JSC Energocom — the newly empowered state supplier — was sourcing natural gas from more than ten European partners via the Trans-Balkan corridor. Strategic reserves were secured in Romania and Ukraine. For the first time, Moldova was no longer hostage to a single supplier.         In 2024 Moldova joined the Vertical Gas Corridor linking Greece, Bulgaria, Romania and Ukraine — a symbolic and practical step toward embedding itself into Europe’s energy arteries. On the electricity side, synchronization with ENTSO-E, the European grid, in March 2022 allowed direct imports from Romania. The Vulcănești–Chișinău transmission line, to be completed this year, alongside the Bălți–Suceava interconnection in tender procedures, ensures Moldova’s future is wired into Europe, not into its separatist past. Since 2025 the right bank of the Dniester has no longer bought electricity from Transnistria.         Accelerated legislative reform         None of Moldova’s progress would have been possible without shock therapy in legislation. The country rewrote its gas law to enforce mandatory storage of 15 percent of annual consumption, guarantee public service obligations, open its markets to competition, and shield vulnerable consumers. In parallel, it adopted EU rules on wholesale market transparency and trading integrity, aligning itself not only in practice but also in law with European standards, a pace of change that has been repeatedly underscored by the Energy Community Secretariat in its annual Implementation Reports, which recognized Moldova as the front-runner in the Community in 2024.         But perhaps the most striking step was political: Moldova became the first country in Europe to renounce Russian energy resources entirely. A government decision spelled it out clearly: “the funds are intended to ensure the resilience and energy independence of the Republic of Moldova, including the complete elimination of any form of dependence on the supply of energy resources from the Russian Federation.”         Junghietu, Moldova’s energy minister, has been blunt about what this meant. “Moldova no longer wants to pay a political price for energy resources — a price that has been immense over the past 30 years. It held back our economic development and kept us prisoners of empty promises.” The new strategy is built on diversification, transparency and competition. As Junghietu put it: “The economy must become robust, so that it is competitive, with prices determined by supply and demand.”         This combination of structural reform and political clarity marked a definitive break with the past — and a foundation for Moldova’s European energy future.         The green transition: from ambition to action         The reforms went beyond emergency fixes. They set the stage for a green transformation. By amending renewables legislation, the government committed to 27 percent renewable energy in total consumption by 2030, with 30 percent in the electricity mix.         The results are visible: tenders for 165 MW of renewable capacity have been launched and contracted and a net billing mechanism was introduced, boosting the number of prosumers. In April 2025 more than a third of Moldova’s electricity already came from local renewables. The ministry has also supported the development of energy communities, biofuels and pilot projects for energy efficiency. The green transition is no longer a slogan — but a growing reality.         More than energy policy — a political project         Digitalization, too, is reshaping the sector. With support from UN Development Programme and the Italian government, 35,000 smart meters are already in place, with a goal to reach 100,000 by 2027. These are not just gadgets — they cut losses, enable real-time monitoring and give consumers more control. Meanwhile, ‘sandbox’ regimes for energy innovators, digital platforms for price comparison and streamlined supplier switching are dragging Moldova’s energy sector into the 21st century.       These are not technical reforms in isolation; they are political acts. Energy independence has become the backbone of Moldova’s EU trajectory. By transposing the EU’s Third and Fourth Energy Packages, adopting the Integrated National Energy and Climate Plan, and actively engaging in European platforms, with technical support from the Energy Community Secretariat that helped authorities navigate these challenges, Chișinău is demonstrating that integration is not just a diplomatic aspiration — it is a lived reality.         Partnerships with Romania have been central. The 2023 energy memorandum, joint infrastructure projects, and cross-border storage and balancing initiatives have anchored Moldova firmly in the European family. Step by step, the country has become not only a consumer but also a credible partner in the European energy market. > These are not technical reforms in isolation; they are political acts. Energy > independence has become the backbone of Moldova’s EU trajectory.         Lessons from crisis         The energy crises of 2021-22 were existential. Moldova was threatened with supply cuts, social unrest and economic collapse. But the government’s response was coordinated, strategic and unusually bold for a country long accustomed to living under the shadow of dependency.         New laws harmonized tariffs, enforced supplier storage obligations and put in place shields for vulnerable households. The Ministry of Energy proved capable of anticipating risks and managing them. Moldova ceased being reactive — and started planning.         Of course, challenges remain. Interconnections with Romania must be further expanded, balancing capacity for the electricity grid is still limited and investment in efficiency has only begun. But today, Moldova has a coherent plan, a competent team and an irreversible direction.         A change of mindset         Perhaps the most profound transformation has been cultural. Chișinău’s energy ministry has evolved from crisis responder to a forward-looking body linking European market realities with citizens’ daily needs. Its teams are now engaging with both the complexities of European energy markets and the practical concerns of Moldovan households. Decisions are increasingly data-driven, communication is transparent, and cooperation with private actors and international partners has become routine.         This institutional maturity is crucial for Moldova’s EU path. Integration is not only about harmonizing legislation but also about building trust, credibility and resilience. Energy has become the showcase — the sector that proves Moldova can implement European rules, innovate and deliver. > Energy has become a catalyst for broader reforms in governance, transparency, > social protection and regional development.         A model in the making         In a region where instability remains the norm, Moldova is beginning to stand out as a model of resilience. Its reforms — synchronization with ENTSO-E, participation in the Vertical Gas Corridor, expansion of renewables and rapid digitalization — are being watched across the Eastern Partnership. Energy has become a catalyst for broader reforms in governance, transparency, social protection and regional development.         What was once a weapon turned against Moldova has been reimagined as a shield. Energy, long the Achilles’ heel of this fragile state, has become its spearhead into Europe.          Moldova’s journey is far from complete. But one thing is already clear: its European future is no longer a promise. It is under construction, one kilowatt at a time. -------------------------------------------------------------------------------- Author: Daniel Apostol is an economic analyst, first vice president of the Association for Economic and Social Studies and Forecasts (ASPES), and CEO of the Federation of Energy Employers of Romania. -------------------------------------------------------------------------------- This publication was produced with the financial support of the European Union. Its content represents the sole responsibility of the MEIR project, financed by the European Union. The content of the publication belongs to the authors and does not necessarily reflect the vision of the European Union.

Listen on * Spotify * Apple Music * Amazon Music Vom CEO-Posten ins Kabinett: Deutschlands erster Digitalminister Karsten Wildberger im Interview mit Gordon Repinski. Er verspricht die digitale Brieftasche für alle Bürger – und nennt einen konkreten Zeitplan, wann der Personalausweis aufs Handy kommt. Außerdem erklärt Wildberger seinen 4-Punkte-Plan zur Entbürokratisierung des Staates, warum er mehr Begeisterung für Künstliche Intelligenz in Deutschland fordert und und der Minister spricht über politische Botschaften, seinen Umgang mit dem Beamtenapparat und weshalb er Altersgrenzen für Social Media unterstützt. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski.

Ulf Kristersson is the prime Minister of Sweden. The next long-term EU budget will be negotiated during the most challenging and defining moment for the continent since the end of the Cold War: Russia’s ongoing war of aggression against Ukraine, intensified hybrid attacks against European democracies and a global economy that is increasingly fragmented and unpredictable. These historically challenging conditions mean there can be no business as usual. Europe must tackle this new geopolitical and geoeconomic reality head on and, accordingly, its long-term budget must be visibly geared toward addressing today’s key challenges — not offer a continuation of the status quo. Europe needs a bold change of perspective, on par with the creation of the single market or the euro. And with little to no room in national budgets to manage an increase in the EU budget, focus needs to drastically shift from the distribution of funds to targeting necessary investments. Three main elements are particularly important here: The first is strengthening European security, defense, resilience and preparedness. We must constrain Russia’s capabilities, particularly through our support to Ukraine, which needs to be strong, enduring and predictable. Member countries also need to increase their national defense spending. Along these lines, the Swedish Parliament recently unanimously agreed on an investment plan toward spending 5 percent of GDP on defense. Similarly, the EU budget can and should be used to stimulate investment by means of promoting joint development and procurement. Furthermore, cohesion funds should be redirected toward improving cross-border military mobility. As for preparedness, Russia’s aggression against Ukraine has put the spotlight on the need for robust and reliable supply chains and food security. Consequently, the European Common Agricultural Policy should be increasingly focused on achieving these objectives within the food sector. The second priority is migration management and internal security. High migration has caused major strains on our societies in recent years. Still, the number of irregular arrivals today is unacceptably high while returns remain too low. Thus, the next long-term budget must address the need for migration management, both by means of financing the full implementation of the Pact on Migration and Asylum, and by exploring further measures including third country partnerships. Such partnerships should focus on preventing irregular migration, increasing returns, and combating smuggling and trafficking networks. At home, the EU must further develop its capabilities to combat organized crime, terrorism and radicalization — both online and offline. Seven out of 10 criminal networks operate in more than three EU countries, which underscores the necessity for cross-border solutions, including the adequate financing of Europol and Eurojust. The third concern is leveraging private investment and boosting competitiveness. As the global economic playbook changes, Europe must do what is necessary to boost its economic strength. And while long-term competitiveness is primarily achieved by improving framework conditions, like simplification and deepening the single market, the bloc must also rapidly increase investment in research, innovation, new technologies, digitalization and AI. Key programs like Horizon Europe should be further developed to enhance Europe’s strategic position as a global center for innovation and excellence. And the green transition should remain a driver for growth. Europe must be capable of attracting the best researchers in the world. Swedish Parliament recently unanimously agreed on an investment plan toward spending 5 percent of GDP on defense. | Toms Kalnins/EPA Member countries already have a big responsibility to make the reforms needed to boost private investment. However, the bloc’s long-term budget should be used to leverage private investment to a much larger extent than it currently is. Rather than simply distributing funds across a range of sectors, it should use guarantees to encourage risk-taking in primarily innovative sectors and facilitate scale-up. In addition to these main policy priorities, a strong rule-of-law conditionality is also a must. In recent years, the EU has developed its rule-of-law toolbox and put it to effective use. Now is the time to further expand and develop the application of fundamental rights and include rule-of-law conditionality in the budget. Taxpayers must be able to trust that the EU’s funds are used appropriately and responsibly. Finally, we must do all this by using our existing resources far more efficiently — not by increasing the budget’s volume or by means of introducing new common debt instruments. Labeling something a priority means that other things are less important. And as a result, we must be ready to make the hard decisions — both as individual member countries and as a bloc. The world is rapidly changing. For a long time, calls to modernize the EU budget meant a step-by-step reprioritization. But this time, small steps won’t be enough. The bloc must rethink and reprioritize to both tackle the new challenges we face today and seize opportunities.