In Bosnia’s Volatile Transition: Waiting for a More Decisive Germany, analyst Nikola Xaviereff argues that Bosnia is entering a precarious political phase following the decline of Milorad Dodik’s separatist push. DGAP suggests that with U.S. attention receding and EU bandwidth stretched, Germany should take a lead role in redesigning Bosnia’s international supervision, especially ahead of its upcoming elections. The risks are high: renewed ethnic tensions, institutional paralysis, and regression on EU integration. For Germany, this isn’t just Balkan policy, it’s a test of its capacity to lead Europe’s stability agenda, safeguard EU enlargement credibility, and prevent geopolitical vacuums just beyond its borders.
Read the full memo on DGAP’s site.
The Konrad-Adenauer-Stiftung’s “From Fall of the Wall to Unity” traces how the Peaceful Revolution of 1989 and the collapse of the GDR regime paved the way for German unification in 1990. It highlights how grassroots protest movements, mass demonstrations in Leipzig, and political negotiating maneuvers (like Kohl’s Ten-Point Plan) combined to dismantle the East-West divide.
The narrative is not just historical it’s a lens for viewing the fragility of political orders, how legitimacy can erode, and how transformation demands both vision and institutional will. For Germany today, revisiting this moment offers more than nostalgia. It reminds Berlin of the costs of polarization, the importance of civil society, and the challenge of integrating divergent systems lessons still relevant as the country wrestles with social change, European cohesion, and the recalibration of its role abroad.
Learn more about it on KAS.
Europe’s AI Act: Setting global rules through risk-based regulation
The EU’s new AI Act is widely seen as the first comprehensive law to regulate artificial intelligence. At its core lies a risk-based framework, which classifies AI systems according to the potential harm they may cause from minimal risk to unacceptable risk, and applies obligations accordingly. The aim is to safeguard fundamental rights while still encouraging innovation, making Europe a standard-setter in global AI governance. For Germany, this means both opportunity and challenge: as one of Europe’s largest tech and industrial hubs, it must ensure compliance while also showing how regulation and competitiveness can go hand in hand.
Read more about it on the official website of the European Union AI Act.
.
France’s borrowing costs have surged, with 10-year bond yields now above Greece and close to Italy, as political instability intensifies. Prime Minister François Bayrou resigned after failing to pass his deficit-cutting budget, leaving President Macron to find a successor capable of navigating a hung parliament. Investors are warning that France is slowly shifting into the Eurozone’s “periphery,” a category of riskier borrowers once reserved for countries like Greece and Italy.
With France’s debt-to-GDP ratio expected to reach 118% by 2026 and social unrest looming, market volatility is likely to continue. Bond managers expect a prolonged period of uncertainty, and any fiscal consolidation is unlikely until after the 2027 presidential elections. Read more on Financial Times.
The final session of the UN Open-Ended Working Group on ICT Security (OEWG 2021–2025) marked a historic milestone with the creation of a permanent UN Global Mechanism to guide responsible state behavior in cyberspace. This new mechanism replaces ad hoc forums with a lasting, action-oriented body designed to foster inclusive dialogue among both states and non-state stakeholders.
At its core, the Global Mechanism will feature two Dedicated Thematic Groups: one focused on promoting a secure, stable, and interoperable ICT environment, and the other on accelerating cyber capacity-building. These groups will provide structured engagement and deliver practical recommendations to address pressing challenges.
The initiative also responds to evolving cyber threats by endorsing voluntary norms for responsible state conduct and advancing confidence-building measures to increase transparency and trust in cyberspace.
Read more at EU Cyber Direct.
The EU and four Mercosur countries — Argentina, Brazil, Paraguay, and Uruguay — reached a political agreement in December 2024 to boost trade and investment. On 3 September 2025, the European Commission adopted proposals for the signature and conclusion of two legal instruments: the EU-Mercosur Partnership Agreement (EMPA) and an interim Trade Agreement (iTA), which will be replaced by the EMPA once fully ratified. The deal lowers tariffs and non-tariff barriers, particularly for small and medium-sized enterprises, sets clear rules on intellectual property, food safety, competition, and regulatory standards, and promotes workers’ rights, environmental protection, and sustainable development. Learn more about it at the European Commission’s trade policy website.
The recent Franco-German Ministerial Council, marked by a meeting between Chancellor Friedrich Merz and President Emmanuel Macron, highlights a renewed commitment to deeper cooperation on economic and security policies. Both leaders emphasized their countries‘ central roles within the EU and stressed the importance of becoming a global powerhouse politically, economically, and in security matters. The council plans to adopt an economic declaration featuring strategic concepts and flagship projects alongside a separate security policy declaration, reflecting the urgent need for a robust and united Europe amid global challenges. Read more on Germany’s foreign policy updates on deutschland.de.
The Financial Times reports that the EU’s latest banking stress test shows European banks are now far stronger than in previous years, with healthier profitability, robust capital buffers, and greater resilience against potential shocks. This matters because a stable banking sector underpins Europe’s ability to weather geopolitical uncertainty, rising interest rates, and external economic pressures. For policymakers, it signals that the euro area’s financial system is better prepared to support investment, credit flows, and economic growth key elements for Europe’s strategic autonomy and credibility in global financial governance. Read the full report on Financial Times.
The European Central Bank (ECB) and the European Banking Authority (EBA) have released a detailed FAQ on the 2025 stress test for euro area banks. It is designed to assess the resilience of 96 major banks under severe economic scenarios. The test simulates adverse events like rising tariffs, disrupted supply chains, and inflation shocks to evaluate how banks can withstand economic pressures and maintain capital adequacy. This exercise is critical for identifying vulnerabilities in the banking sector and guiding future supervisory measures to safeguard financial stability in the eurozone. It also reflects ongoing efforts to integrate emerging risks, including climate-related financial threats, into the oversight framework. For more details, visit the official ECB’s webiste.
The article reports that the European Central Bank (ECB) is set to incorporate a „climate factor“ into its lending criteria for banks, signaling a strategic move to align monetary policy with the EU’s climate goals. This initiative aims to encourage banks to increase financing for sustainable projects by providing preferential treatment to those demonstrating strong climate risk management and green investment portfolios. The policy shift reflects growing recognition of climate change as a systemic financial risk and reinforces the ECB’s commitment to support the EU’s transition to a low-carbon economy. By adjusting collateral frameworks and lending operations, the ECB seeks to influence banks’ behavior, incentivizing them to integrate environmental considerations into their risk assessments and lending decisions. This development highlights the expanding role of central banks in addressing climate change beyond traditional monetary policy tools. For comprehensive details, see the full article on Reuters.
The article explores how energy infrastructures have become focal points for both competition and cooperation among major powers in these strategically significant regions. It highlights the contrasting dynamics where Central Asia experiences significant collaboration between the US, Japan, Russia, and China within multilateral and bilateral frameworks, while South-East Asia sees limited great power cooperation on energy issues. The study emphasizes that energy regionalism arises not only from rivalries but also from overlapping strategic interests, with regional agency playing a crucial role in shaping energy transitions and enhancing stability amid great power competition. This comparative analysis sheds light on the complex interplay between historical legacies, geopolitical ambitions, and regional strategies in shaping Asia’s energy future. To read further, see the full article in Oxford Academic.
You must know about the special section in the July 2025 issue of International Affairs titled „Central Asia and the Indo-Pacific: bridging the divide in an age of great power rivalry.“ This collection addresses how prevailing Indo-Pacific strategies mostly focus on maritime domains, often sidelining continental Eurasia and central Asia’s strategic importance. This section explains how China views Central Asia as pivotal for its Eurasian ambitions, particularly under its Belt and Road Initiative, while other Indo-Pacific countries respond differently. Importantly, Central Asian states are seen as active agents employing hedging, diversification, and omni-enmeshment strategies to balance relations with China, Russia, and Indo-Pacific actors. This reframes how policymakers and analysts should view the Indo-Pacific and Central Asia jointly rather than separately, reflecting complex geopolitical realities. You can read more on this important synthesis at the official publication here: Central Asia and the Indo-Pacific special section.Central Asia and the Indo-Pacific special section.
As the Schengen Agreement marks its 40th anniversary, Europe’s passport-free zone remains a pillar of integration with over 3.5 million people crossing internal borders daily and nearly 70 percent of Europeans supporting free movement, according to the European Commission’s 2024 Eurobarometer. Yet, migration pressures, security concerns, and political shifts have exposed vulnerabilities, with temporary border checks and delayed rollout of smart border systems like the Entry/Exit System (EES) and the European Travel Information and Authorization System (ETIAS) highlighting the need for stronger, collective action. The Commission’s 2025 Schengen Report urges member states to avoid unilateral measures, strengthen external borders, and deepen cooperation in policing, asylum, and digital infrastructure. For diplomatic and business professionals in Berlin, the lessons are clear: free movement is a vital asset for Europe’s competitiveness and daily life; smart, interoperable borders are essential for balancing openness and security; and solidarity, not solo national moves, will determine Schengen’s resilience in the decade ahead. For full insights, read the EU’s latest analysis here and explore the challenges and milestones at ETIAS.com.
Still, LinkedIn is not the “new Twitter.” Broad, dynamic political debates have yet to take off on the platform — at least consistently. For now, meaningful engagement remains the exception, appearing only in isolated posts. (MB)
The previously unknown candidate, Călin Georgescu, won the first round — in clear violation of the country’s electoral law. His success highlights the growing power of digital election campaigns. Yet, even Georgescu’s right-wing populist successor achieved an outstanding result in the rerun, securing 40 percent of the vote.
Do these results simply reflect Romania’s political mood? Or were the campaigns so effective that they swayed voters in a lasting way? One thing is certain: elections today are also being won online. (MB)