Berlin’s Talent Race + Multilateralism Under Strain + Minilateral Power Shifts + Global Economy at a Crossroads + Arctic Tensions + Germany’s Trade Dilemma

IN WEEK Week 04, 2026
Quiz

In 2025, which issue caused the most visible tension between the United States and European NATO members?

Burden-sharing and defense spending commitments

Welcome

Dear Readers,

Welcome to the Diplomacy Berlin Newsletter.

Berlin has always been a city shaped by movement, ideas, and people arriving from elsewhere. What is changing now is the scale and the stakes. Talent has become a strategic question, not just an economic one, and cities are increasingly competing on openness, fairness, and the ability to integrate difference into everyday life.

This week, we look closely at how Berlin positions itself in that global competition. Berlin Talent offers a useful lens into how international visibility is built not through slogans, but through networks, partnerships, and the unglamorous work of making migration fair, workable, and human. From cooperation with universities in Cairo and São Paulo to close coordination with the Goethe-Institut worldwide, the story here is not recruitment alone, but long-term integration. Language, intercultural competence, workplace culture, and social belonging emerge as just as decisive as visas or job contracts. In a world where mobility is increasingly politicised, Berlin’s approach highlights what it means to treat talent as people, not pipelines.

From there, we zoom out. Multilateralism is under strain, minilateral formats are gaining ground, and the global economy is entering 2026 with cautious optimism shadowed by structural risks. Trade debates, sustainability conflicts, and geopolitical friction from Greenland to global markets remind us that openness is no longer assumed, it has to be defended, redesigned, and explained.

Taken together, these pieces point to a common question: how do cities and countries remain attractive, credible, and resilient in a fragmented world? Berlin’s answer, at least in part, lies in how it welcomes, integrates, and values those who choose to build their future here.

With best regards,
Sigrid Arteaga
Editorial Director

In The Hood

Berlin in the Global Race for Skilled Professionals

Talent Berlin is Berlin’s official welcome and information hub for international professionals who want to work, live, and build a future in the city.

What this really means is simple: Talent Berlin helps people turn the idea of moving to Berlin into something practical and doable. Through its online portal and social channels, Talent Berlin provides clear, reliable information about Berlin’s job market, key industries, and employers, along with concrete career guidance and job opportunities. The Meta Job Portal alone brings together around 90 percent of all published vacancies across sectors in the Berlin-Brandenburg capital region.

Beyond jobs, Talent Berlin supports the full arrival journey. This includes guidance on visas and residence permits, relocating to Berlin, finding accommodation, navigating public authorities, and settling into everyday life in the city. The platform also offers up-to-date news and practical tips to help newcomers find their footing faster.

A key part of Talent Berlin’s work is its community. Newcomers can ask questions, share concerns, and receive tailored answers that reflect real-life challenges of starting over in a new city. At its core, Talent Berlin connects people, opportunities, and information, making Berlin more accessible as a place to work, live, and belong. Made with love in Berlin.

How does Berlin Talent strengthen Berlin’s international visibility as an attractive location for skilled professionals?

Berlin Talent promotes the German capital digitally and online, as well as at numerous national and international events, trade fairs, and conferences around the world, positioning Berlin as an attractive place to start a career, take the next professional step, or found a company.

Which international organisations, cities, or networks does Berlin Talent work with?

The Talent Service at Berlin Partner has a broad network of international partners through which we inform Berlin-based companies. This ranges from the many international projects run by employment agencies and Chambers of Commerce Abroad (such as Hand in Hand for International Talents or African Skills 4 Germany) to educational institutions worldwide. These include RV College in Bengaluru (India), the AHK Vietnam in Ho Chi Minh City, the Gyeonggido Job Foundation in South Korea, the German Jordanian University in Amman (Jordan), the Egyptian-German Center for Jobs, Migration and Remigration, Ain Shams University in Cairo (Egypt), Universidade Anhembi Morumbi in São Paulo (Brazil), and many others.

Talent.berlin also works very closely with the Goethe-Institut network worldwide, both with individual institutes abroad and within Germany, particularly when it comes to integration-related support services for companies and their international skilled workers.

How does Berlin Talent support the internationalisation of the Berlin labour market?

It is important to us to recommend partners from our network to Berlin’s economy and companies who stand for values such as fair migration. We aim to provide employers with a realistic picture of country-specific pathways for labour migration. From a German perspective, and given the physical distance alone, it is often difficult to assess which recruitment organisations in countries of origin operate in a reliable and fair manner. For this reason, we maintain a strong network of AHKs, Goethe-Institutes, TELC, and other educational institutions that are active in countries such as India, Vietnam, or Tunisia and share their country-specific expertise with us.

What role does intercultural competence play in working with international talent?

In short: a very significant one. Language skills are one aspect, but put simply, the ability, sensitivity, and empathy to engage with people shaped by different cultures, and to approach them with openness and an understanding of difference, is half the battle. We are not talking about cultural standards or stereotypes, but about recognising that integration does not end with the issuance of a visa or upon arrival at the airport.

If integration is to succeed, workplace-related structures are needed, such as mentorship programmes, support with administrative procedures, and, very importantly, ensuring that companies actively involve their existing workforce in the internationalisation of the team. Integration also does not end after working hours. The particularly German tendency to strictly separate private and professional life is something people first need to become aware of, and then take into account during integration and onboarding processes in order to sensitise both sides, the receiving workforce and the arriving talent. And not to forget: a sense of humour often helps too, because nothing breaks down mental barriers faster than sharing a laugh.

Measure

UN Secretary-General: Multilateralism Under Financial, Legal, and Political Strain in 2026

In his final priorities address to the General Assembly, UN Secretary-General António Guterres described the global order as operating in a state of escalating strain, defined by widening conflict, rising inequality, and a visible erosion of international law. He warned that multilateralism is being tested at a moment of peak necessity, as geopolitical fragmentation, unilateral use of force, and the concentration of wealth and technological power undermine collective problem-solving. Guterres reaffirmed UN engagement on AI governance, climate action, development finance, and humanitarian response, but stressed that legitimacy – rather than ambition – is now the core challenge facing global institutions.

A key pressure point is institutional sustainability. Guterres labeled the UN’s financial situation “totally unsustainable,” citing unpaid and delayed member-state contributions and signaling that existing budgetary rules may require overhaul to prevent systemic breakdown. Through the UN80 Initiative and proposed agency mergers, the Secretariat aims to deliver greater efficiency amid shrinking resources, while broader reforms – particularly of the Security Council and international financial institutions – are framed as unavoidable if global governance is to reflect shifting economic power. For diplomats, the address underscores a stark reality: without structural reform and renewed political commitment, the multilateral system risks managed decline rather than renewal.

Read the full address on the United Nations‘ website.

Read

Why Minilateralism Is Gaining Ground in a Fragmented Global Order?

As confidence in traditional multilateral institutions weakens, “minilateralism” is emerging as a pragmatic alternative for international cooperation. Highlighted in the World Economic Forum’s Global Risks Report 2026, the approach favors small, flexible coalitions of states, companies, and civil society actors working around shared interests rather than shared values. These groupings are designed to bypass bureaucratic inertia and geopolitical deadlock, allowing faster coordination on specific challenges such as climate action, connectivity, public health, and emerging technologies, even among actors with divergent political systems.

Proponents argue that minilateralism delivers speed and impact where universal frameworks struggle, as seen in initiatives like the First Movers Coalition, GAVI, and CEO-led climate alliances. Critics, however, warn that the proliferation of overlapping coalitions risks fragmenting global governance and weakening accountability, since most commitments remain voluntary and non-binding. The prevailing view for 2026 points toward a hybrid model: targeted minilateral action addressing urgent, sector-specific problems, alongside reformed multilateral institutions capable of managing universal risks that require legitimacy, scale, and enforcement.

Read the full Article on the World Economic Forum’s Website.

Listen

Global Economy at a Crossroads: Resilience, AI Optimism and Hidden Risks

In this Radio Davos episode, John Letzing discusses the January 2026 Chief Economists’ Outlook with Christian Keller, Head of Economics Research at Barclays. The outlook draws on a global survey of senior economists and describes an economy marked by uncertainty but surprising resilience. Keller explains that despite tariffs, geopolitical tensions, and trade fragmentation, growth has held up better than expected. This is largely because many tariffs were delayed or softened, companies adjusted quickly by stockpiling goods, and markets calmed once the worst scenarios did not materialize.

A central theme of the conversation is artificial intelligence. Keller argues that the AI investment boom has played a decisive role in supporting economic performance, especially in the United States. Massive spending on data centres, energy infrastructure, and AI technologies has boosted investment, lifted stock markets, and increased household wealth, which in turn supported consumer spending. While economists acknowledge the risk of overvaluation, Keller suggests that even if current enthusiasm proves excessive, it may still leave behind valuable infrastructure that raises long-term productivity.

The episode also looks ahead to the main risks for 2026. Keller warns that the economic impact of tariffs may yet emerge as inventories run down and higher costs reach consumers. He discusses concerns about rising inequality from AI-driven job disruption, persistent cost-of-living pressures, growing public debt, and the political temptation to weaken central bank independence. Overall, the discussion offers a clear and grounded explanation of why the global economy appears stable for now, but remains vulnerable to delayed shocks and policy missteps.

Listen to the full episode on: Radio Davos, World Economic Forum Podcasts

Watch

Trump’s Greenland Gambit: Europe Pushes Back

Trump’s renewed demand for U.S. control over Greenland has turned a symbolic idea into a geopolitical stress test for the transatlantic alliance. By tying tariffs and economic coercion to territorial concessions, Washington is challenging not only Denmark’s sovereignty but the norms that underpin NATO’s cohesion. Such linkage between trade leverage and alliance loyalty risks blurring the boundary between partnership and pressure  – a shift that could erode confidence in U.S. leadership among its closest allies.

European capitals have responded with uncommon unity, emphasizing that Greenland’s status falls under both Danish sovereignty and international law. This firmness conveys more than national resistance; it signals Europe’s growing determination to uphold a rules-based order even in the face of U.S. pressure. For diplomats and policymakers, the concern is less about control of Arctic territory and more about the precedent that coercive diplomacy sets within a system built on mutual trust.

If this approach persists, Washington may find itself undermining the very alliances essential to countering challenges from Russia and China in the Arctic and beyond. The Greenland dispute exemplifies how unilateral tactics, even under the guise of strategic necessity, can fracture collective security arrangements. What is at stake is not a piece of land, but the resilience of the transatlantic fabric that has long sustained Western stability.

Watch the full episode on PBS NewsHour.

Highlighted
Learn

Global Economy 2026: Resilience with Hidden Fault Lines

The latest World Economic Outlook update presents a global economy that appears steady but rests on a narrow and uneven foundation. Global growth is projected at 3.3 percent in 2026 and 3.2 percent in 2027, supported by accommodative financial conditions, still‑supportive fiscal stances in some advanced economies, and surging technology-related investment, particularly in artificial intelligence and digital infrastructure. Inflation is expected to continue its gradual decline, with headline rates falling to about 3.8 percent in 2026 and 3.4 percent in 2027, even as the United States returns to target more slowly than other major economies, given earlier tariff shocks and lingering cost pressures. Beneath the aggregate numbers, the distribution of growth is uneven: advanced economies are forecast to expand by around 1.8 percent in 2026, while emerging market and developing economies edge just above 4 percent, with Asia—driven largely by China’s decelerating but still sizable expansion and India’s robust 6‑plus percent growth – remaining the main engine of global activity amid softer trade and weaker performance in parts of Europe and Latin America.

The report stresses that the main vulnerabilities lie in how dependent this baseline is on a few growth drivers and on continued policy support. A reassessment of AI‑related productivity expectations could trigger corrections in high-tech equity markets, weigh on investment, and expose leverage and opacity in segments of the nonbank financial system, tightening financial conditions globally. Renewed trade frictions or sector‑specific restrictions on critical inputs such as semiconductors and rare earths risk disrupting supply chains, amplifying price pressures in key sectors, and further entrenching geo‑economic fragmentation, even as global trade volume growth is already projected to slow from 4.1 percent in 2025 to 2.6 percent in 2026. Elevated public debt levels, persistent geopolitical flashpoints from Ukraine and the Middle East to Asia, and episodes of domestic political interference in economic institutions together form a dense risk matrix that could quickly overturn the benign baseline if multiple shocks interact. In this environment, the report calls for rebuilding fiscal buffers, safeguarding central bank credibility and financial stability, reducing policy-driven uncertainty – especially in trade and industrial policy—and accelerating structural reforms to broaden the sources of growth beyond a narrow, tech‑centric, and stimulus‑supported core.

Read the full report on the International Monetary Fund’s Website.

Know

Germany at the Crossroads: Free Trade, Farming, and the Politics of Sustainability

Germany is entering 2026 with trade and agriculture firmly back on the political agenda. As Berlin pushes ahead with plans to deepen free-trade ties with South America, the debate highlights a familiar tension in German policy: how to reconcile export-driven growth with environmental standards and domestic concerns from farmers and industry alike. The issue comes into sharp focus this week as International Green Week Berlin returns to the capital, bringing together policymakers, producers, and international partners to discuss food security, sustainability, and global supply chains. For Germany, the timing is telling.

Trade diversification beyond traditional partners has become a strategic necessity, while Green Week underscores how closely foreign trade, climate policy, and domestic politics are now intertwined. What once looked like separate debates are increasingly part of the same question: how Germany positions itself economically and politically in a more fragmented global order.

Read the full story on The Local de.

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The Institute for Peace Research and Security Policy at the University of Hamburg (IFSH) Berlin Office sits at the intersection of research and policy, translating academic expertise into real-world security debates. From arms control and military technologies to peacebuilding and international law, the Berlin team engages closely with policymakers, diplomats, and civil society. For readers interested in how evidence-based research informs Germany’s security and foreign policy thinking, IFSH’s Berlin Office is a sharp, reliable voice worth following.

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Eat and Drink

Tucked away in Berlin-Wedding, Café Oeuf is a quiet reminder that good food doesn’t need theatrics. The focus here is simple, well-executed comfort: fluffy omelettes, soft scrambled eggs, buttery brioche, and seasonal sides that keep the menu grounded and unfussy. It’s the kind of place that works equally well for a slow breakfast meeting or a late-morning reset between appointments. Calm, reliable, and refreshingly unpretentious Café Oeuf feels like a small pause button in the middle of the city.

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