Why is Europe so important for German capital?
We have discussed the European Union explosion of an arms race, and the German arms industry – recently on August 15th, 2025. This was in relation to the European attempt to show up President Zelensky of the Ukraine (MLRG.online “After Alaska Summit” ).
This article by “Workers Future” places this in industry in a broader historical context of the post-Second World War building of the “Bundeswehr” – the armed forces of the Federal Republic of Germany. The article also explains why Germany is so keen to further weld the European Union into a force that it dominates – but the resistance it faced from France. Finally it examines the illusions that “Die Linke” sow about a “United Europe”. The article was the content of a speech at a large youth rally this summer.
Originally at: Arbeit Zukunft 2nd July 2025.
Why is Europe so important for German capital?
Recently, the media, various bourgeois parties, and the government have increasingly promoted a “united Europe.” This is seen as being a bastion of democracy, peace, freedom, common values, and a bulwark against dictatorships and aggressors. Both the old and the new governments are committed to this concept. Why?
Economically, the Federal Republic of Germany is now number three in the world (GDP of $4.5 trillion in 2023), behind the USA ($27.7 trillion) and China ($17.8 trillion). However, Germany has only a quarter of China’s economic output and one-sixth of the USA’s. Germany is in a similar league to Japan (number 4), India (#5), Great Britain (#6), and France (#7). This makes it, in fact, not a serious competitor to the two largest economic powers.
However, the situation would be very different if a “united Europe” were to emerge under the leadership of German capital ($19.8 trillion). Then they could catch up with China and become a real world power economically. This would put them at number 2 in the rankings – ahead of China!
Without Europe, Germany may be a strong economic power. But it is always dependent on an alliance with a stronger power and therefore, it is always forced to compromise at its own expense. This can be clearly seen in relations with the USA, where German capital, while striving for independence, is repeatedly forced into subordination.
One example is the blowing up of the North Stream 2 gas pipeline through Ukraine with the help of the USA – an openly aggressive act that was covered up and swallowed by the German government. Although this cut them off from cheap Russian gas and thus caused them considerable disadvantages in economic competition, they had to submit to their more powerful “partner,” the USA. Since then, they have been importing expensive and ecologically disastrous fracking gas from the USA – with the help of Economics Minister Habeck of the Green Party.
Old Dreams
It has always been clear to German capital that it stands little chance against the larger imperialist powers on its own.
It was already developing “European plans” during World War I. Chancellor Bethmann-Hollweg‘s secret September Program was developed on September 9, 1914. The Chancellor’s closest advisor, Kurt Riezler, wrote in his diary at the time:
“Coblenz, August 19 [1914]
In the evening, a long conversation about Poland and the possibility of a looser annexation of other states to the Reich – a Central European system of differential tariffs. Greater Germany with Belgium, Holland, Poland as narrow, Austria as broad protectorates.”
Wikipedia
And half a year later:
“Charleville 18/4 [1915]
Yesterday I sat at length with the Chancellor to explain to him my new Europe, i.e., the European disguise of our will to power. The Central European Reich of the German Nation. The nested system common to joint-stock companies, the German Reich as a stock corporation with a Prussian majority shareholding, any addition of new shareholders would destroy this majority, on which the Reich stands, as on Prussian hegemony. Therefore, a confederation of states around the German Reich, in which the Reich has the same majority as Prussia does in the Reich… Then treat Austria so that it grows into it of its own accord…
Then strengthen the European idea in Scandinavia and Holland…
This Central Europe is the world-historical task, both economically and politically.”
Ibid
Nazi propaganda for a “United Europe” under the rule of German imperialism
The Nazi regime took up these plans again. A European Committee established in April 1943 within the Foreign Office developed plans for a European confederation of 13 states under German leadership. Ludwig Erhard (born 1897, died 1977) served as Minister of Economics from 1949 to 1963 and then as Chancellor from 1963 to 1966.
During the Nazi era, he represented the “Reich Industrial Group” and authored the memorandum “War Financing and Debt Consolidation.” He was tasked with developing plans for a postwar reorganization of Europe. His memorandum called for “a large-scale economic order with free markets and a guarantee of private property.”
Fortunately, as is well known, Nazi German imperialism’s plans to become the dominant power in Europe failed.
Old wine in new bottles…
After the victory over fascism, German capitalists were forced to “eat chalk,” to pretend to be “peaceful” and “democratic,” and to talk of “friendship between nations.” For this reason, the Federal Republic initially officially renounced an army, but secretly rebuilt the first military structures in cooperation with the USA. Because the fight against the then socialist Soviet Union made it necessary for US imperialism to make Germany a “frontline state.”
Now Ludwig Erhard and German capital had to continue pursuing their old plans, initially through “peaceful,” economic means. The goal was to strengthen German capital economically again and, to this end, create the largest possible free market in Europe. The rise of German capital, the “economic miracle,” got off to a successful start.
As early as 1950, Chancellor Adenauer appointed Theodor Blank as the Chancellor’s Commissioner for “Issues Related to the Increase in Allied Troops”. Blank’s office was dedicated to preparing for rearmament. This:
“actually contradicted the Allied regulations, according to which the states of Germany were to remain demilitarized in the long term; however, it was known to the Western Allies and, in view of the looming Cold War, was tolerated and even encouraged by them.”
Wikipedia
With the official establishment of the Bundeswehr (German army) in 1955, the first step was taken to officially cast off the shackles of defeat. The USA needed German imperialism again to fight socialism. An example of the Bundeswehr’s supposedly “democratic spirit”: Adolf Heusinger, who had already served in high positions in the German Empire and Hitler’s army, and who now became the first Inspector General of the Bundeswehr. He had played a leading role in the Nazi planning and execution of the invasions of Czechoslovakia, Poland, and the Soviet Union. Many historians now admit that the Bundeswehr was built by Nazi generals who committed numerous war crimes.
Step by step, the Bundeswehr also built a military power base, breaking the restrictions initially imposed by the Allies. The penultimate barrier was removed in March 1999 with the Bundeswehr’s first foreign deployment in the Kosovo War.
Green Party Foreign Minister Joschka Fischer and SPD War Minister Rudolf Scharping declared the Bundeswehr’s war mission a “humanitarian mission.” Joschka Fischer even declared in the Bundestag that, because of Auschwitz, Germany was obligated to defend humanity by bombing other countries. Later, SPD War Minister Peter Struck declared:
“The security of the Federal Republic of Germany is also being defended today in the Hindu Kush.”
Newsletter of Bundesregierung Deutschland
German capital has also regained a good position in arms exports, with a 5.6% global market share. But it cannot compete with the USA (43%), France (9.6%), and Russia (7.8%). A “united Europe,” however, would have around 28% of the global arms market, placing it second only to the USA.
The only thing German imperialism lacks as the final step to becoming a “fully-fledged” imperialist power is the atomic bomb. But it is working on that, too, by repeatedly demanding a “European army” that would give the Bundeswehr access to nuclear weapons. But its competitors are trying to prevent this. France cunningly offered a “European nuclear force” with French nuclear weapons, but under French supreme command. This, however, was not in the interests of German capital.
A ”United Europe” is also repeatedly used to advance and justify rearmament plans. For example, it was primarily the German government that initiated the EU’s €800 billion rearmament package. It is also an instrument for aligning competitors with a common line. Naturally, the French, Italian, and Spanish arms industries, among others, will benefit from this gigantic EU program.
Today, the narrative of a “turning point” (“Zeitenwende”) is being used to build the Bundeswehr, under the CDU/CSU and SPD, into the strongest army in Europe.
The prerequisite for this was the tremendous economic rise of the Federal Republic, which was also made possible by the EU. Thanks to the large European internal market, Germany became the world export champion, a title it only had to relinquish to China in 2009. Germany conducts two-thirds of its foreign trade within Europe and almost 60% within the EU. Without the EU, German capital would be significantly weaker. However, this strengthening of German imperialism came at the expense of the other EU members.
The competitors of German imperialism view this with suspicion, as the example of the Bundeswehr’s nuclear armament demonstrates. The EU is neither economically, politically, nor militarily united, as each power within it pursues its own goals.
In addition to its existing economic dominance, German imperialism also strives for military dominance by building the strongest army in Europe. This would allow it to enormously increase its pressure on its competitors and bring it closer to its goal: a Europe under German leadership. Thus, the long-held dream of Kaiser Wilhelm and Adolf Hitler would finally come true.
Sweet Propaganda – a “United Europe”
To make the Federal Republic a global power again, however, the approval of the population is needed above all. To achieve this, the media and politicians join in their praise of a “united Europe” and “European solutions.” (To make their case they argue – Ed) the EU stands for freedom, democracy, prosperity, and friendship between nations.
For example, the then chairman of the German Trade Union Confederation (DGB), Michael Sommer, declared in an advertising campaign for the European elections in 2014:
“Europe is the cradle of democracy! A democratic and just EU must not only better protect fundamental rights within the EU legal system, but also put the enforcement of fundamental social rights on the political agenda.”
DGB
The campaign was conducted jointly with the Federation of German Industries (BDI), whose then president stated:
“Germany is benefiting from the euro and the single market. Now we must shape globalization together.”
Ulrich Grillo, Präsident Bundersverband der Deutschen Industrie e.V. at: “Eine gemeinsame Kampagne der Mitgliedsorganisationene im Netzwek EBD”; EBD
The lure of jobs is intended to repeatedly win over the working class to the great power plans of German imperialism.
In its 2024 Economic Atlas, the Green Party‘s Heinrich Böll Foundation writes:
“EUROPE – STRONGER TOGETHER: Equalizing living standards in its member states is one of the goals of the European Union. The internal market, redistribution of public funds, freedom of movement for workers, and the euro are particularly important for this.”
Heinrich Boll Foundation; At p. 4.
What is being forgotten, especially by some union leaders, is that Europe has also become a huge labor market, fueling low-cost competition among the working class. Labor migration is being massively exploited by capital to suppress wages.
“. . . The wage gap between workers from Germany and abroad is becoming increasingly wider. In the last ten years, it has almost tripled. . .
Full-time employees who do not have a German passport earned an average of €2,638 gross per month at the end of 2020. This is €903 less than those with a German passport. In 2010, the difference was still €317. The gap between workers from Germany and those from other EU countries has grown particularly sharply: This gap has increased more than tenfold over the last decade, from €91 to €1,003.”
Spiegel online, September 16, 2021
This naturally also has a repercussion on the wages of workers from Germany, which are rising less or not at all in the face of low-cost competition. And capital is also exploiting this competition, which it itself has created and exploited, to divide the various sections of the working class with racism and hate speech. While capital benefits from the huge labor market in two ways, it also oppresses and weakens the working class. A joint struggle against capital’s low-wage strategy is necessary.
A Democratic EU?
When an EU constitution was proposed in 2004, only a few countries held referendums. In 2005, referendums on the EU constitution were held in France and the Netherlands, where it was rejected by a large majority. In Germany, there was no referendum at all. The people had no voice.
The constitution itself also stipulated only limited “rights.” The primary aim was to minimize the existing veto rights of individual states and thus cement the rule of the strongest powers. Parliament was not the highest body, but merely a co-decision-maker. The main decision-makers remained the EU Commission appointed by the governments and the national governments.
After the constitution’s failure, the Lisbon Treaty was simply adopted by the governments in 2007, against the will of the people. It largely contained the provisions of the rejected EU constitution. This time, there was no referendum, except in Ireland. When the treaty was again rejected by the people there in 2008, a new referendum was held in 2009. After a massive propaganda campaign, Ireland also voted “yes.”
The Lisbon Treaty stipulated, among other things:
“Member States and the Union shall act in accordance with the principle of an open market economy with free competition.”
Capitalism was thus contractually enshrined for all EU states. This gave the EU ability to:
– Form combat missions, and an obligation to rearm, Section 28a, Paragraph 3.
– Make a shift in power in favor of the major powers in the EU; with higher voting shares for Germany, France, Great Britain…
– Handicap possible resistance by ensuring the European Parliament can only decide jointly with the Council of Ministers – thus never being able to go against the power apparatus.
These statements demonstrate how “democratic” the EU is:
Karel de Gucht, Belgian Foreign Minister:
“The aim of the Constitutional Treaty was to become more readable; the aim of this treaty (Lisbon Treaty, ed.) was to become illegible. The Constitution aimed to be clear, whereas this treaty had to be unclear. It is a success.”
Flandreinfo, June 23, 2007
Jean-Claude Juncker, Prime Minister of Luxembourg:
“Of course there will be transfers of sovereignty. But would I be intelligent enough to draw public attention to this fact?”
Telegraph, July 3, 2007
Jan Peter Balkenende, Dutch Prime Minister:
“A new referendum is not desirable.”
Telegraph, September 23, 2007
Away with the illusions!
Time and again, illusions arise in the labor movement and among the people, which are fueled by propaganda. The ‘Left Party’ (Die Linke) declares on its website:
“For an EU that is part of the solution. . . its founding is linked to the vision of freedom and peace. . . We fight together with unions, sister parties, and movements for a different, better, more social, democratic EU. . .”
Die Linke
True – a critical comment is made:
“…in fact, it often serves the free market.”
But in light of the Lisbon Treaty and the goals that the various imperialist powers, including German imperialism, are pursuing with the EU, this is a cover-up of the harsh facts. It is pretended that this construct could also serve the working class and the people. Such illusions and hopes are also strongly present in the trade union movement and among many colleagues.
We can understand that many people want a peaceful Europe. Moreover the abolition of border controls was also a plus for many. People could travel freely within the EU.
But, firstly, this was always a privilege of the people of the EU itself and never meant for everyone.
And secondly, this right is also being increasingly restricted. Border controls are once again part of everyday life in Europe. They are an annoying obstacle for EU citizens, but externally, they are primarily intended to strengthen Fortress Europe against refugees.
Above all, open borders have always been a tremendous advantage for capital, which has thus been able to operate in a large market. Production can be relocated to low-cost locations. The commodity labor can be purchased where wages are lowest. The products can be mass-produced and sold on a large market. Profits have been able to rise, and German imperialism has secured its rise to become once again the strongest power in Europe.
Given the fact that German imperialism is preparing to become not only the strongest economic power in Europe, but also the strongest military power in Europe, hopes in the EU are dangerous for the labour movement.
It is necessary to face reality and clearly see that the EU is an imperialist project and that German imperialism wants to use it to rise to world power again.
“From the standpoint of the economic conditions of imperialism… a United States of Europe under capitalist conditions is either impossible or reactionary.”
V.I. Lenin, On the Slogan of the United States of Europe
By arbeit-zukunft.de; republished with permission 24 August 2025
