28 February 2025
Germany, Europe and Australia: Common Challenges, Shared Solutions
On the 6th of March 2025 H.E. Ms Beate Grzeski, Ambassador of the Federal Republic of Germany to Australia, delivered a public lecture in Adelaide hosted by the UniSA Jean Monnet Centre of Excellence. Ambassador Grzeski's lecture explored the evolving partnership between Germany, Europe, and Australia addressing common challenges and advancing shared solution in an increasingly complex world.
Lecture Audio
Lecture Transcript
Let me begin by acknowledging that the land on which we meet today is the traditional lands of the Kaurna People, and I pay my respect to their elders past, present and emerging.
Thanks to Uni SA Jean Monnet Centre / Erasmus Plus Centre of Excellence, specifically to Prof Anthony Elliot and Louis Everuss. Thanks also to Matt Williams, the German Honorary Consul, who connects South Australia with Germany and Europe and for whose advice I am always grateful.
Ladies and gentlemen, it is an honor to be here today to discuss the evolving partnership between Germany, Europe, and Australia. Our nations share deep-rooted values, strong democratic institutions, and a commitment to addressing global challenges through collaboration and innovation.
I want to talk today about common challenges and shared solutions from a German and European perspective and in view of the potential of collaborating with Australia. Nevertheless, I think some remarks on the current situation in Germany might be of interest to you. Therefore, I start with the elections for Federal Parliament only 11 days ago and the steps ahead to form a new Government, then, I move on to Australian-German relations and the potential to benefit even more from one another, and finally take a look at the broader picture and how Australia and Germany, benefiting also from its membership in the EU, can tackle global challenges together.
Germany held its federal elections for the Bundestag on 23 February. The conservative Christian Democrats (28 %) won the election, but will need to find a partner in order to secure a majority. The extreme right party, the AfD (Alternative für Deutschland), doubled its votes to 20% but will not be part of a government. Friedrich Merz from CDU/CSU is conducting exploratory talks with the Social Democrats to form a government by Easter. Until then, the current government under Social Democrat Olaf Scholz and the Greens remains in a caretaker role. The transition is running smoothly, also with regards to the transition of power. The sense of urgency due to the tense international situation is clearly felt.
I want to stress that traditionally Foreign Policy is an area where mainstream parties in Germany do agree on main lines and continuity is to be expected. Europe is in our DNA as a founding member of the EWG European Economic Community on 25 March 1957, more than 70 years ago- Germany has always been an advocate for advancing European integration. Also, the close partnership with the USA remains essential – but with a clearer focus on Europe’s own responsibility (Eigenverantwortung) and capacity to act (Handlungsfähigkeit).
Today we are 10 days after 24 February, which marked the third anniversary of Russia’s invasion of Ukraine and the suffering caused by this war is immeasurable. Germany has provided nearly 44 billion Euros in various ways of support and accepted over one million Ukrainian refugees, in bilateral support second only to US. Military support, including equipment and weapons, has helped Ukraine defend its sovereignty. The common objective is to maintain the sovereign independence of Ukraine. The War should end as soon as possible, but with the inclusion of Ukraine into the negotiations. A just and sustainable peace cannot be dictated, that would only play into Russia s hands. Europe will support Ukraine – “for as long as it takes” and we are glad that Australia reaffirmed its commitment to do the same.
Germany remains unwavering in its commitment to remembering the Holocaust and fighting antisemitism in all forms. Since the horrific Hamas terror attack on Israel on 7 October 2023, we have seen a disturbing rise in antisemitic incidents. The Government is resolute: Jewish life in Germany must be protected and supported. We also recognize the importance of standing against all forms of hatred, including Islamophobia, racism, and homophobia. Freedom of expression is a fundamental right, but hate speech and the denial of Israel’s right to exist are inacceptable. At the same time, we remain deeply concerned about the humanitarian crisis in Gaza and are significantly increasing humanitarian assistance to alleviate suffering.
Germany and Australia share a robust and multifaceted bilateral relationship, driven by shared values and mutual strategic interests. Our bilateral relationship has entered a new phase of dynamism, marked by deepened cooperation across multiple sectors. In defence, we have seen unprecedented participation of the Bundeswehr, especially in joint military exercises such as Pitch Black and Talisman Sabre, as well as industrial partnerships. German-built vessels are ready to enhance Australia’s naval capabilities, while Australian-made armored vehicles (Boxer) – built in Brisbane – are soon to be integrated into the German Army. These collaborations underscore our shared commitment to global security and stability.
High-level visits have intensified, PM Albanese met his German counterpart Olaf Scholz in Berlin in July 2023. Australian ministers continue to prioritize Germany as a strategic destination in Europe (little less than to London and Paris). German ministers and business delegations are visiting Australia more frequently.
Australian states – including South Australia – have strengthened their presence in Germany, promoting trade, research, and industry collaboration. In September 2024, Premier Peter Malinauskas announced the opening of a South Australia trade and investment office in Frankfurt. Good choice - I might say: Germany is South Australia’s 8th largest trading partner with a bilateral trade volume of 622 million Euros and 67 German companies with a physical presence.
From a German perspective, Australia’s continued economic growth and stability provide a stable foundation for bilateral trade. With its proximity to the Asia-Pacific region, especially south and southeast Asia, there is a great potential for regional trade too. Today, Germany is Australia’s largest EU trading partner with a two-way trade volume of 16.8 billion euros. Around 760 German companies operate in Australia, creating about 100,000 jobs.
Here in Adelaide, I would like to mention the visit of Foreign Minister Annalena Baerbock in May last year for extensive foreign policy consultations with Foreign Minister Penny Wong. A very emotional part of the program, that the two ministers jointly conducted, was the return of artefacts from German Grassi Museum in Leipzig to elders of the Kaurna people here in Adelaide. A bark peeler, a club, a spear and a fishing net found their way back on country and are on public display at the Art Gallery of South Australia. This is an area for even closer cooperation, also on return of human remains.
Our countries face several common challenges, just to give you three examples. Labour & Skills Shortages: Australia and Germany struggle with skilled labour shortages, particularly in healthcare, engineering, and technology sectors. Aging populations exacerbate this issue, requiring both countries to invest in workforce training. Just Transition: Our countries are transitioning away from fossil fuels towards renewable energy, aiming to decarbonize heavy industries. Germany is phasing out coal and nuclear power while expanding wind and solar energy. Australia is moving away from a “dig and ship” economy while maintaining energy security and affordability. This is a good opportunity to exchange experiences, for example between traditional coal regions transitioning to future industries also with a view to social issues: “leave no one behind”.
And a short remark on another joint challenge, as the people s congress currently meets in the Great Hall of the People in Beijing a short remark: PRC is the rising power and according to the German China Strategy: partner, competitor and systemic rival. Both countries have balanced smartly the different dimensions in this relationship, reflecting that China will remain so important to us both economically. Derisking and diversifying is an answer to that from German perspective.
Australia’s ambition to become a “renewable energy superpower” aligns with Germany’s need for sustainable energy imports. We are working closely on Australia’s energy transition, including through the new €400 million H2Global bilateral auction window.
German companies stand ready to provide technology but also to import products from Australia. Thereby they would diversity their supply chains, especially with green hydrogen and its derivatives, but also in critical and strategic minerals. The healthcare sector offers promising opportunities for pharmaceuticals and medical technology, as well as joint research and development. BioNTechs plan to establish a vaccine research and production facility underscores the potential for deeper cooperation in life sciences and biotech innovation. Germany’s expertise in environmental protection, particularly in the circular economy and waste management, could contribute significantly to Australia's sustainability efforts. German companies can play a vital role in advancing recycling technologies—not only in Australia but also in neighboring Pacific Island countries, which are an important focus for Australia. Infrastructure development is another field where German companies can contribute their know-how, particularly in specialized construction such as tunnel engineering and large-scale infrastructure projects such as the 2032 Brisbane Olympic Games.
Germany, the European Union, and Australia have deepened their cooperation through the bilateral” Enhanced Strategic Partnership” but also “Framework Agreement between the EU and Australia” from 2017 that entered into force in October 2022. The collaboration is on a solid basis and spans critical areas. However, we witness that yesterday’s certainties are todays past and disruption seems to be the motto of the moment. In Chinese language, the character for “crisis” includes the character for “chance”, and I like to look at the current situation in that way.
The question is: How to navigate in a new geopolitical landscape? In my view three wisdoms could serve as guidance: 1) Global Challenges cannot be mastered alone. 2) It makes sense to cross a river by touching the stones. 3) Paths do exist that have been serving us all well to foster stability and prosperity: The UN Charter and the International Rules Based Order. As we find ourselves in this new geopolitical landscape where competing visions of the world order are leading to a more transactional approach to global affairs. Not only individual countries, but Europe has to change to thrive in this new reality too.
In the past, Europe has always risen to the challenges and it is reforming again now from vaccines to the continuous support of Ukraine or recently stepping up on defence. Enhanced European action also strengthens the transatlantic community. As Chancellor Scholz put it in the Munich Security Conference mid-February: “Defending freedom and democracy against its enemies ties the transatlantic alliance together”. A significant increase in common EU defence spending and the resulting capabilities relieves the USA and thus the transatlantic alliance as a whole.
One thing became clear: the strategic theatres cannot be separated any more. Australia is contributing significantly to the support of Ukraine. In the Indo-Pacific region, Germany is expanding its strategic engagement through participation in multinational military exercises like “Pitch Black” and “Pacific Skies 2024”, soon “Talisman Sabre” - thus reinforcing our commitment to regional stability and the rules-based international order.
Commission President von der Leyen recently reaffirmed in Davos that the EU remains open for business. Punitive tariffs make no sense and would eventually lead to a global race to the bottom. Rules based trade is a win-win game.
We remain hopeful that the negotiations on the EU-Australia Free Trade Agreement will be resumed after the Australian elections. An FTA would grant Australian businesses access to a vast market of 446 million consumers and an economy worth €17 trillion (AUD 28 trillion). It would open new export opportunities, while also allowing to benefit from cheaper goods and services from EU suppliers. The agreement would also improve market access for Australian service providers in key sectors like education, financial, and professional services.
Climate Change is the biggest security threat to the Pacific Island states, pacific leaders are warning again and again. Germany and many other EU members stand side by side with PIS in this global challenge. Therefore, Germany is closely cooperating with SIDS and AOSIS in in the multinational negotiation rounds and also strongly support Australia’s bid to host COP 31 in partnership with the Pacific. The island states have contributed minimal to global emissions but experience the strongest impact from climate change
Europe and its member states are accelerating their transition to climate neutrality. The European Commission is currently considering an ambitious nationally determined contribution (NDC) of 90% emissions reductions by 2040. On top of that, the new Green Deal Industrial Plan just announced by Commission President von der Leyen aims to enhance the competitiveness of Europe's manufacturing capacity for net-zero technologies. In my view synergies with the Australian Governments Future Made in Australia would be worth exploring further.
For technological advancement international research collaboration is crucial. With several hundred research cooperations in place between our universities and institutions both our countries are well positioned. The next logical step would be an Australian participation in “Horizon Europe”, like more and more countries of this region do. It would be mutually beneficial, e.g. driving innovation in fields of the future such as AI, space technology and quantum computing.
Germany, Europe, and Australia are natural partners. Whether through strengthening regional security, advancing clean energy, fostering research partnerships or expanding and diversifying trade. Our collaboration is built on a foundation of trust, strategic alignment, and the recognition that both countries stand to benefit from closer cooperation in an era of geopolitical uncertainty.
As we look ahead, we must ask ourselves: What more can we do with determination and unity to defend democracy, and promote global stability and tackle climate change? Which actions can we take to deepen our cooperation further?
I look forward to engaging in this discussion with you today.
Thank you.
H.E. Ms Beate Grzeski
Beate Grzeski is the German Ambassador to Australia since October 2023, also responsible for the Pacific Island States of Papua New Guinea, Solomon Islands, Vanuatu and Nauru. Prior to this she was the German Special Envoy for the Pacific Island States since 2022.
After studying law at Munich University, she began her career in the Foreign Ministry in 1998.
Her extensive diplomatic career includes her role as Deputy Head of Mission at the German Embassy in Moscow from 2017 to 2022 and as Minister / Head of Economic Department at the German Embassy in Beijing from 2011 to 2014. She held key positions at the Federal Foreign Office such as Commissioner for Refugees and Migration (2015 – 2017) and as Director for International Academic Relations and Public Diplomacy, Dialogue among Civilizations and as Head of Division EU Justice and Home Affairs and Advisor on European Law.
Other engagements included the role as Private Secretary to the President of the German Bundestag and as Advisor for the Chairman of the EPP-Group in the European Convention in 2002-2003.
Previously she also worked as Private Secretary to the Special Coordinator of the Stability Pact for South-Eastern Europe (SPSC 1999 – 2002).
