Berlin and Warsaw Forge Pact to Revitalize European Economy

By Christian Kraemer and Anna Wlodarczak-Semczuk

WARSAW, Feb 2 (Reuters) – In a significant show of unity, the finance chiefs of Germany and Poland declared on Monday that the two nations must spearhead Europe's economic revival. The joint appeal, made during German Finance Minister Lars Klingbeil's inaugural visit to Warsaw, underscores a growing consensus on the need for a more dynamic and competitive EU.

"The task before us is clear: we must make Europe more competitive," stated Polish Finance Minister Andrzej Domanski at a press conference alongside Klingbeil, who also serves as Germany's Vice Chancellor.

Klingbeil emphasized the urgency, pointing to a transforming global order. "The transatlantic relationship is undergoing profound change," he noted. "In this critical phase, we have a shared responsibility to strengthen Europe and drive it forward." He outlined a vision for an EU that is "faster, smarter, and better equipped to handle complexity."

The ministers' meeting follows a recent video conference involving officials from six of Europe's largest economies, who committed to acting as engines for progress. A primary focus is overcoming the EU's often cumbersome decision-making processes, which have stalled key investment and innovation projects.

"We have agreed to deepen cooperation, pick up the pace, and expect the same from the European Commission," Klingbeil said, referencing the earlier talks.

Domanski framed the challenge in starker terms, describing Europe as being in a decisive race. "It is a race for competitiveness, for building genuine economic strength," he asserted. "To win it, we must accelerate now."

Analysis & Reaction: The strong alignment between Berlin and Warsaw marks a notable development, given their historical political and economic differences. Analysts suggest the war in Ukraine and increased global economic fragmentation have forced a pragmatic partnership. The call for faster EU processes directly targets criticisms that the bloc is too slow to respond to crises and technological shifts like the green transition and AI.

What People Are Saying:

Klara Schmidt, an economist at the European Policy Centre in Brussels: "This is a pragmatic and necessary alliance. Poland's dynamic growth combined with Germany's industrial base could create a powerful core for EU renewal, provided they can align their long-term fiscal priorities."

Mateusz Nowak, a small business owner in Poznań: "Finally, some clear talk about speed! We feel the competition from Asia and the U.S. every day. If this partnership cuts the red tape that holds up funding for new technologies, it will be a game-changer for companies like mine."

Professor Erik Vogel, political scientist at a Berlin university: "This is largely political theatre. Klingbeil is trying to burnish his statesman credentials, and Domanski wants a seat at the top table. Their visions for industrial policy and fiscal rules remain miles apart. I'll believe it when I see concrete legislation, not just press conference rhetoric."

Elżbieta Kowalska, a retired teacher in Wrocław: "It makes me hopeful to see them working together. Europe feels under pressure, and we are stronger when our largest nations cooperate. But the proof will be in whether this helps control inflation and creates stable jobs for my grandchildren."

(Reporting by Anna Wlodarczak-Semczuk and Christian Kraemer; Writing by Pawel Florkiewicz and Maria Martinez; Editing by Linda Pasquini)