The Empire Strikes Back: Germany’s Economic Expansion in Eastern Europe

• In Event: Appetitive States

Abstract

Today Germany exerts disproportionate control over the economies of the new East-Central European members. Despite concern in the European Union of Germany amassing power post-reunification, Germany has become a de-facto East European empire, with German firms owning large sections of the Eastern European industry and in some cases Germany having veto power over these political systems. For example, despite the vehement protestations of Poland and other states against the Nord Stream 2 pipeline project, Germany has managed to push it through with little sanction from the European Union. In this paper we trace how several decades of political and economic activity of Germany and German firms originally aimed at cultivating stronger ties with Communist countries [Ost-politik] have led to the creation of this empire. Using case study analysis, we also compare EU responses to Germany reunification to the meek response to Ost-politik.

Authors

• Emily Holland, United States Naval War College

• Hadas Aron, New York University