Germany, the European Union’s largest economy, believes the Free Trade Agreement (FTA) between India and the EU—set for a potential conclusion by the end of 2025—will be a game changer for its industries and a catalyst for increased investments in India. German ambassador Philip Ackermann, in an interview with TOI, described the recent round of FTA negotiations as “fruitful” and more productive than previous discussions, following European Commission President Ursula von der Leyen’s visit last month.
Strengthening Trade and Investment Ties
“Progress on the FTA was one of the key outcomes of the European Commission president’s visit. The 2025-end deadline now seems achievable. The last round of talks after the visit was particularly constructive. I am cautiously optimistic that we will secure a strong agreement,” Ackermann stated. He emphasized Germany’s keen interest in the deal, noting that it would significantly benefit German industries and attract further investment into India.
Germany’s Commitment to the Indo-Pacific
Amid shifts in Germany’s security policy under Chancellor-in-waiting Friedrich Merz, Ackermann reaffirmed that Berlin remains committed to the Indo-Pacific, dismissing concerns of reduced engagement. “The Indo-Pacific is crucial for security and trade, and India has proven to be a reliable partner. Germany will continue its active presence in the region, as seen with last year’s Tarang Shakti air exercise,” he said. Joint naval and air force exercises between India and European partners are expected to strengthen security ties further.
European Defence and Transatlantic Relations
With Europe facing geopolitical uncertainties, Ackermann addressed concerns about former U.S. President Donald Trump’s stance on NATO and European defence spending. While acknowledging Washington’s call for greater European contributions to defence, he reassured that the transatlantic alliance remains strong. “The new German government will work to keep this alliance meaningful. At the same time, we recognize that Europe must enhance its defence capabilities, as reflected in von der Leyen’s ‘Rearm Europe’ programme,” he said.
The ambassador underscored the need for Europe to be better prepared in the face of rising security threats, particularly from Russia. “Russia has shown no hesitation in invading other nations, so why should they stop at Ukraine? Germany’s defence policy is undergoing a fundamental shift to address these realities,” he remarked.
No Peace Without Ukraine
On the ongoing war in Ukraine, Ackermann stated that while Germany supports diplomatic solutions, Russia has yet to accept a viable ceasefire proposal. He highlighted the importance of including Ukraine in peace negotiations, referencing its participation in recent talks in Jeddah.
With the India-EU FTA progressing and Germany reinforcing its role in global security, the evolving partnership between Berlin and New Delhi is set to play a crucial role in shaping future economic and strategic ties.
