Challenges and Tensions: The Decline of the European Union

This chapter examines the structural and systemic challenges faced by the European Union, including the decline in its global GDP share, negative demographic trends, and increasing competition from China. It discusses the inadequate preparation by EU institutions and politicians for these changes, the tension between Germany's economic ambitions and the need for fair competition within the EU, and the potential downside of not resolving these challenges. The chapter emphasizes concerns about the EU's geopolitical relevance in a Cold War 2.0 scenario.