Weekly Geopolitical Report – Germany: The Reluctant Superpower (February 27, 2017)

by Bill O’Grady

Two recent articles caught our attention.  First, the New York Times discussed growing worries in Germany about a post-American Europe,[1] given the potential withdrawal of the U.S. from the superpower role.  Second, an op-ed in Der Spiegel went so far as to suggest that Germany should become the world leader of an anti-Trump coalition.[2]

These reports are indicative of the rapidly changing views on how the U.S. manages its superpower role.  The fact that Germans are considering their options in response to American foreign policy is a significant development.

In this report, we will start with the background of American foreign policy post-WWII to the present.  This will set the stage for why Germany feels compelled to adjust its foreign policy.  From there, we will reflect on how Europe and the rest of the world could react to a hegemonic Germany.  As always, we will conclude with potential market ramifications.

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[2] http://www.spiegel.de/international/world/a-1133177.html