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Actually, maybe: How German Angst could become Europe’s nightmare

Ein Foto zeigt eine Person in dunklem Anzug mit gesenktem Kopf vor einer hellen Wand und starken Schatten.
Friedrich Merz (CDU), Federal Chancellor, photographed before the government declaration in the German Bundestag in Berlin, 18.03.2026. | picture alliance / photothek.de | Florian Gaertner

Berlin; late August: when politics normally stirs into life after the holiday lull. But this year, the lull never came.

German chancellor Friedrich Merz is beset by approval levels plumbing the depths of the depleted Rhine and Danube. His governing conservative CDU party spent the summer at war with itself over pension reform (not helped by a botched cabinet reshuffle). Some of the chancellor’s staunchest supporters are even openly wondering whether he is still up to the job. To get out of the hole they are in, Merz and his ministers now want to project a sense of Aufbruchstimmung—a feeling of renewal and restart.

Whether they succeed will determine Europe’s future.

Germany’s economy has endured six years of paltry growth. Its traditionally strong industries are screaming for protection against China, US tariffs and energy price shocks (and against their own past decisions). Strong end-of-the-republic vibes suffuse dark political commentary, “mainstream” parties oscillate between panic and despair, and resignation has set in among voters. What until recently seemed little more than a media talking point on an “Andy Burnham moment”—meaning the possibility of Hendrik Wüst, North Rhine-Westphalia’s minister-president, succeeding Merz as chancellor this autumn—could yet become reality.

For decades, Germany was Europe’s byword for political stability and predictability. Today, it is hard to overstate how little is now unthinkable in German politics. All bets are off. Decision-makers elsewhere in Europe should get ready for the possibility of a new kind of Germany: no longer boring, no longer stable—and no longer rich.

Why the Angst is now real

Germany is days away from elections in three eastern states which could shake the government in Berlin to its foundations. First up is Saxony-Anhalt, where on September 6th the far-right populist Alternative für Deutschland (AfD) could rewrite German post-war history and turn the decades-long mantra of “never again” into “actually, maybe”. Polling suggests even an absolute majority for the party is within reach. The AfD, the CDU and the Left could be the only parties to clear the 5% threshold for the state parliament. Two weeks after that possible momentous result, the states of Berlin and Mecklenburg-Vorpommern will also elect new parliaments.

While the situation for the political centre looks a little less dire in the latter two places, complicated three-party coalitions are the likely outcome in both. This will have a compounding effect on the stability of the federal government. The CDU leadership under Merz remains adamant that the “firewall” must hold, ruling out any coalition or cooperation with the AfD. Yet this position is increasingly being questioned by local politicians and by conservative thinkers within and around the party. Many in the CDU are frustrated by what they see as the strategic price of the firewall. With their preferred coalition partner, the liberal Free Democrats, now struggling to clear the 5% threshold almost anywhere, ruling out the AfD leaves the CDU ever-more dependent on centre-left coalitions. In critics’ view, this deprives the party of options and leaves it hostage to the remaining potential coalition partners.

An AfD minister-president would be a brutal demonstration of the political establishment’s inability to provide a convincing vision for the country

An AfD minister-president in one of Germany’s states would be more than a striking political development. It would be a brutal demonstration of the political establishment’s inability to provide a convincing vision for the country’s economic, political and social future. In recent years, German leaders have made more reform announcements than actual reforms. The previous government tried to adapt to the Zeitenwende without imposing any hardship on Germans—and failed. Now, the Merz government seems equally unable to muster the political strength for major reform.

Instead, it has too often looked to the past for answers: back to the combustion engine, back to looser labour rights, back to family values. The only policy area where the government now seems readier to change course is on China, where it has said it will push through a more active European position on protecting markets and punishing China’s predatory economic behaviour. In a revealing commentary, however, Merz himself announced this was enabled, not by his decisive political leadership, but by the altered posture of the German car industry.

This vacuum in dealing with the implications of the changing global environment leaves huge room for the political fringes, especially from the far-right. The AfD’s offer is revisionist—drastically curb immigration and asylum, reverse key elements of the energy transition, challenge European integration, end the euro and pursue a distinctly nationalist approach to foreign policy. All this is deeply unsettling to the political establishment, but resonates with a growing constituency of voters united by restrictive stances on migration and cultural issues.  

The strength of the AfD is a symptom, not a cause. It did not rise to prominence overnight and has been part of Germany’s political landscape now for more than a decade. But the party is now within striking distance of actual political power at a time when the country’s political and economic foundations are starting to crumble. The war in Ukraine, volatility in America and conflict over the Strait of Hormuz are stretching the limits of German leaders’ attention as well as the country’s fiscal space. Germany’s long-term trade relationship with China is now a liability and an epic drought has shrivelled what little hope remained for Germany’s economic recovery. Berlin is not only forced to reckon with the failures and missed opportunities of the past decade on everything, everywhere, all at once; but the politicians seem unprepared either to put up a real fight for survival or even adjust to this new reality in a form of managed decline.

No time for Schadenfreude

Germany is hardly the first European country to experience a radical reshaping of its party system and the rise of the far-right; Italy and France have been through similar upheavals. And Germany itself, amid deep economic problems, was called “the sick man of Europe” back in 1999, only to recover and to become the continent’s exporting powerhouse. Why should the rest of Europe now worry so much about Germany’s malaise?

The answer is: because a German crisis is a European crisis. Germany is too economically and politically important to fail. Its economic weight, role at the heart of the EU and position as Europe’s most populous member state mean this would be more than just another episode of national political turbulence. A Germany that is oozing 15,000 industrial jobs each month, becoming even more dependent on technology imports and increasingly incapable of internal reform risks dragging Europe towards fragmentation and exploitation.

Unless political leaders come up with something new, a German pall will blot all major items on the EU’s agenda: the next multiannual financial framework; the future of the bloc’s industrial policy; European efforts to rearm and build resilience; a more autonomous capacity on emerging technologies and the economic muscle to create international leverage behind a new global trading agenda. That is not to mention the serious consequences of a German disengagement for Europe’s continued support for Ukraine.

“German leadership is not optional”, Sweden’s defence minister said at a public event this month, attended by one of the authors. German political elites seem to disagree. Theirs is the third largest economy in the world, sitting at the core of the world’s largest single market, boasting leading international companies and building up one of the largest defence budgets anywhere. Yet they appear to lack any sense of their own domestic, let alone global, agency. The three upcoming state elections may give them their last chance and some momentum to turn things around. But if Berlin becomes entirely enfeebled under the ensuing political fallout, the rest of Europe is likely to suffer in the same way.

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Ten European startups reshaping the blue economy

31 August 2026 at 08:00

The blue economy is no longer limited to traditional activities such as fishing, shipping, or offshore energy. A new generation of startups is applying climate technology, AI, robotics, biotechnology, and advanced water treatment to make the use of oceans and water resources cleaner, safer, and more efficient.

EU-Startups’ 2026 coverage shows Europe’s blue economy attracting capital across a widening range of technologies and business models. Among the larger disclosed rounds were €17 million for cargo.one alongside its acquisition of ocean-freight platform Cargofive or €10 million for marine-biofuel developer Kvasir Technologies.

These deals form part of a broader funding landscape in which startups are tackling an increasingly diverse set of challenges linked to how Europe uses, manages and protects its water and marine resources.

From restoring coastal ecosystems and generating tidal power to removing hazardous pollutants, improving wastewater treatment, supporting aquaculture, automating maritime operations, and digitalising shipping workflows. The 10 startups featured below, founded between 2020 and 2026, show how innovation is reshaping the sector, in alphabetical order.

Apolownia is a Paris-based ClimateTech startup committed to making the world more environmentally responsible. It develops end-to-end coastal ecosystem restoration and blue carbon projects, including mangroves and seagrass, which help absorb carbon, reduce coastal flooding and erosion, improve water quality, and provide vital habitats for fish and other marine life.

Its projects use satellite imagery, drones, field data and AI to monitor ecosystem recovery, estimate carbon capture and verify environmental results in a clear, data-driven way. Founded in 2024, it has raised €1 million in funding.

Headquartered in Heidelberg, Blue Activity develops sustainable water treatment solutions for industrial cooling systems. Its technology replaces toxic biocides with natural microorganisms and uses biopolymer-based additives, supported by digital monitoring. This reduces chemical use, water and energy consumption, maintenance needs, and operating costs.

They promote cleaner industrial water use and reduce harmful substances discharged into the environment, contributing to healthier water resources and more sustainable industry. Founded in 2021, Blue Activity secured €8.5 million in funding.

Launched in 2024 in Oxford, Caudal Energy takes a bio-inspired approach to tidal power, using ocean currents to generate predictable renewable electricity. Its system replaces conventional rotating turbines with moving fins inspired by marine animals, offering a lower-impact solution with simpler installation and maintenance.

This activity matters because tidal energy provides a more predictable source of renewable power than solar and wind, which are more dependent on weather conditions. By harnessing ocean currents, Caudal Energy can support the transition away from fossil fuels while making sustainable use of marine resources. Its innovative approach has enabled them to raise €6.43 million in total funding.

Heidelberg-based Enzo focuses on preventing water damage before it becomes costly. Its one-drop sensor attaches to a building’s main water pipe. The startup uses AI to identify unusual water-use patterns and small leaks in real time, allowing homeowners, property managers, and insurers to act before major damage occurs.

Its activity is especially useful as early leak detection can prevent water waste, expensive repairs, and unnecessary use of materials and energy, contributing to more sustainable water management. Launched in 2021, Enzo raised €6.3 million in funding.

Lir Labs develops an AI-powered microscopy for wastewater treatment, turning microscopic activity in water into real-time operational insights. Its automated sensors use deep-learning models to identify changes in microorganisms and particles, allowing treatment plants to detect problems earlier and adjust processes before they become costly or disruptive.

Their approach to better wastewater monitoring can reduce pollution, unnecessary energy and chemical use, and the risk of poorly treated water reaching natural ecosystems. Founded in 2025 in London, Lir Labs raised €245k in funding.

Mirai Robotics is a Maritime Technology startup building AI-powered systems that allow boats and other maritime vehicles to operate with little or no human control. Its technology can guide vessels, process data from onboard sensors, and make real-time decisions during activities such as sea patrols, inspections, monitoring, and transport.

Its activity is relevant to the blue economy because it can make maritime operations safer, faster, and more efficient, particularly in remote or hazardous areas where deploying human crews can be costly or risky. Launched in 2025 in Bari, this innovative approach to maritime automation and safety has helped Mirai Robotics secure €3.6 million in funding.

Founded in 2023 in Ireland, Nernst Electric develops on-site oxygen generation for aquaculture. Its technology uses ceramic membranes to separate high-purity oxygen directly from the surrounding air, allowing fish farms to produce oxygen where it is needed instead of relying on costly deliveries. A reliable oxygen supply is essential for maintaining healthy fish and productive farming conditions, particularly at remote sites.

Its efficient way of producing oxygen can make aquaculture more reliable, cost-effective, and sustainable while reducing energy use and dependence on transported liquid oxygen. Nernst Electric has a total funding of €1.7 million.

NPHarvest has developed a new hardware solution for the collection and recycling of nutrients from wastewater, turning them into valuable ingredients for fertilisers. Installed at wastewater, biogas, and agricultural facilities, its system captures nitrogen and phosphorus that would otherwise be lost as waste and converts them into reusable resources. The technology can recover up to 90% of these nutrients while operating with relatively low energy use.

As excesses of nitrogen and phosphorus can pollute waterways and contribute to eutrophication, managing levels in the water is important. By recovering these nutrients before they reach the environment, NPHarvest supports cleaner aquatic ecosystems while creating a circular source of fertiliser. Founded in 2023 in Espoo, they raised €3.4 million in total funding.

Zürich-based Oxyle tackles some of the hardest-to-remove pollutants in water, particularly PFAS, also known as “forever chemicals”. Rather than simply filtering these substances out, the company’s treatment systems break them down at the molecular level, preventing them from being transferred into another waste stream. The technology is designed for contaminated groundwater and industrial wastewater across sectors such as chemicals, pharmaceuticals, semiconductors, and waste management.

Removing hazardous chemicals from wastewater helps prevent them from reaching rivers, groundwater, and marine ecosystems, supporting cleaner and safer water resources. Founded in 2020, Oxyle has raised €19 million in funding.

Founded in 2021 in Berlin, Tilla is a MaritimeTech startup bringing greater efficiency to crew changes in the shipping industry. Its digital platform brings voyage schedules, crew information, port services, flights, and travel requirements into one place, allowing shipping companies to plan and manage crew movements with fewer manual tasks, lower costs, and better coordination.

By digitalising a process still heavily dependent on spreadsheets, emails, and manual coordination, Tilla supports more efficient maritime operations and improves the working experience of seafarers. The company raised €4 million in total funding.

New episode – DGT podcast: Languages and Technology

31 August 2026 at 07:30

Episode 12 of the DGT podcast: Languages and Technology is now available.

How does a European Commission document become 24 equally valid language versions of itself?

Anna Holmén takes us behind the scenes with Ivana Zeljković and Iva Vatova-Ivanova from DG Translation’s Demand Management Unit. They reveal how translation work is planned and coordinated, how tight deadlines are managed, and how technology and human expertise come together to keep multilingual Europe running — with deadline compliance above 99%.

Step inside the engine room of EU multilingualism and discover the people and processes that make 24-language communication possible every day.

Tune in to hear more

The digital euro: The weapon of financial sovereignty that the EU can no longer do without

31 August 2026 at 07:00

As negotiations enter their final phase in Brussels, the ECB's electronic money project for 2029 transcends the technical aspects. It is a geopolitical imperative in the face of American payment giants.

The European Union's financial landscape is poised for its biggest transformation since the introduction of banknotes in 2002. The European Parliament, the Council, and the European Central Bank (ECB) are intensifying their discussions to finalize the regulatory framework for the digital euro. If the draft legislation is adopted as planned by the end of the year, the first large-scale practical tests with financial institutions will begin in the autumn of 2027.

The goal? Official rollout to citizens by 2029.

This gradual rollout is not accidental. It is designed to guarantee the stability of an interconnected banking system. The digital euro will not be a private or speculative cryptocurrency, but rather an electronic extension of fiat money, issued and guaranteed directly by the ECB. It will function as a direct complement to coins and banknotes, without ever replacing them.

For European citizens, this innovation will represent a public and sovereign alternative to the private tech and credit giants. In practical terms, everyone will be able to use these services directly through their own commercial bank's app.

The major technical advance lies in offline use.

Money transfers between devices will occur simply by being near each other, even without an internet connection or in the event of a power outage. This option will also guarantee complete confidentiality, since peer-to-peer transactions will not pass through commercial servers.

To reassure the traditional banking sector and prevent a massive flight of deposits during the crisis, the ECB will impose a strict limit. The current holding ceiling is €3,000 per person. Any excess amount received in this public wallet will automatically be transferred to the user's regular commercial bank account.

Beyond the technical aspects, the issue is crucial for the real economy, particularly for small and medium-sized enterprises (SMEs) and the tourism sector within the single market. Currently, almost all European merchants rely on payment infrastructures controlled by American companies, such as Visa and Mastercard. With each transaction, the local economy relinquishes a portion of its profit margins in intermediation fees.

The digital euro aims to break this dependence.

The European Parliament is pushing for acceptance fees imposed on merchants to be significantly lower than current rates, or even completely free for microtransactions.

Intra-European tourism will also benefit from increased fluidity. A traveler will be able to pay for their expenses instantly in any member state using their home country's electronic wallet, without friction, without going through third-party networks and without hidden cross-border fees.

Despite the Commission's optimistic pronouncements, the European banking sector remains on the defensive. Banks are concerned about the operational costs associated with upgrading their technological systems, but above all about the risk of liquidity loss if clients choose to place their funds under the direct custody of the central bank.

The decisions made in the coming months will therefore be highly political. The challenge will be to define the necessary economic incentives for banks to agree to distribute this currency. For the European Union, the 2029 deadline provides the necessary time to orchestrate this new era of financial autonomy and strategic sovereignty.

Belgian animal park helping to preserve endangered species

31 August 2026 at 06:30

A leading Belgian animal park is doing its bit to save a critically endangered species.

International Orangutan Day was recently celebrated (August 19) to raise global awareness about the status of orangutans and the urgent need to protect their natural habitats.

All three species—the Bornean, Sumatran, and Tapanuli orangutans—face a high risk of extinction due to rapid habitat loss.

Widespread deforestation for palm oil plantations, illegal logging, mining, and the illegal pet trade threaten their survival.

Orangutans mainly eat fruit and are essential for dispersing seeds across the rainforest, helping the wider ecosystem flourish. They are known as gardeners of the forest.

For every captive orangutan sold in the exotic pet market, up to 11 other orangutans are killed while trying to protect the poached ape. Many captive animals also don’t survive the journey.

Pairi Daiza,  privately owned zoo and botanical garden located in Brugelette, Hainaut, Belgium is playing its part in trying to save the species.

It is home to nine Sumatran orangutans living in two family groups in the park’s “Kingdom of Ganesha.”

Ujian, Sari, Berani and Mathaï live in the Flower Temple. Just opposite them, Kembali, Rosa, Indah, Yori and Bukit have found their home in the “House of the Artisan.”

The second family arrived at the park in November last year from Frankfurt Zoo as part of the European Ex Situ Programme coordinated by the European Association of Zoos and Aquaria.

Their arrival enabled the five orangutans to remain together while contributing to the responsible management of a healthy European population of this critically endangered species.

In July, both orangutan families were outside at the same time for the very first time, “a wonderful milestone for us,” said Niels Vandemeulebroucke, orangutan care taker at Pairi Daiza.

“For Kembali and his family, almost everything was new: trees to climb, ropes and branches to explore, birds, toys, places to rest, and an entire world of movement around them.

“You could really see how stimulating their new environment was,” added Niels.

“Their neighbours in the Flower Temple were just as intrigued. At first, the whole family climbed high into the trees to get a better look at the newcomers. Interestingly, there were no striking vocalisations or direct interactions, and the initial curiosity quickly settled down.

“Today, both families are once again mainly focused on the relationships within their own group.”

As “ambassadors” for their species, Pairi Daiza’s orangutans help visitors understand the “extraordinary intelligence” of these great apes, he added.

They also provide a powerful connection with their wild relatives and the rapidly disappearing forests on which their survival depends.

Niels went on: “Our role is to keep challenging them.

“We continuously create new enrichments and opportunities to explore, think and interact, because orangutans are exceptionally intelligent animals. I’m looking forward to sharing those observations, and some of their individual personalities, with visitors during this special weekend."

The 75-hectare large animal park is located on the site of the former Cistercian Cambron Abbey, and is home to over 7,000 animals.

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