Trade between Austria and Germany, AI Ambition and Workforce Readiness, German-French-Startup-Investment, EUs Budget Fight, Schengen on stake, Transatlantic Ties Beyond Goods Trade, Körber-Foundation, Stay Dry with a Unique Treasure

IN WEEK 30, 2025
Quiz

Which international trade agreement between the EU and Japan came into force in 2019, creating one of the world’s largest open economic areas?

The EU-Japan Economic Partnership Agreement (EPA).

Welcome

Dear Readers, welcome to the Diplomacy Berlin Newsletter.

It is our pleasure to welcome you to the inaugural edition of the Diplomacy Berlin Newsletter—a publication dedicated to fostering international dialogue and offering informed insight into the diplomatic and geopolitical developments shaping Berlin, Germany, and the wider European context.

Created as a response to the growing need for a multilingual, independent platform reflecting the rhythm of diplomatic life in Berlin, this newsletter serves as a curated space for embassies, international institutions, policymakers, and global citizens. Each issue delivers timely updates, policy briefings, cultural highlights, and selected perspectives from within the diplomatic community.

We are committed to offering content that is clear, credible, and relevant—guided by principles of transparency, professionalism, and mutual understanding.

We want to thank Mathias Bannas from berlinbubble for his expertise and guidance on the political landscape in Berlin. Furthermore, we acknowledge the contributions of Rufruf and Hamid, whose collaboration has supported the development of this platform. Finally, we thank Novalis Medienhaus, under the direction of Egon Huschitt, where Diplomacy Berlin is produced.

For press releases, event announcements, or editorial ideas, please contact us at editorial@diplomacy.berlin.

With best regards,
Sigrid Arteaga

In The Hood

David Imme on sustainability, networks and new perspectives between Austria and Germany

David Imme is Key Account Manager for Energy, Sustainability and Natural Resources at Advantage Austria. David speaks several languages, including Japanese, and has worked for Japanese companies for many years, most recently for Jetro, the Japan External Trade Organisation. His focus is on economic development, relationship building and ecosystem development.

What’s the most surprising business opportunity or challenge you’ve encountered working between Austria and Germany?

I am working at Advantage Austria only for a short while now, therefore a variety of challenges is yet to come. Here is a very recent story, which took me by surprise. A team colleague told me a few days ago that a private contact of hers attended an online seminar on energy with over 600 participants and various press representatives and someone mentioned that Austria is organizing an event on hydrogen in October. This will actually be the first event that I am allowed to organize in my responsibility for the area of energy, sustainability and natural resources. However, the event has not yet been officially announced, but I have only spread the information in my network so far. I was pleasantly surprised to hear that the message of the event is getting out ahead of me, and it reminded me how important networking is in our job.

How do you see global sustainability goals shaping Austria’s economic partnerships?

Austria supports global sustainability goals through its economic partnerships by promoting inclusive and climate-friendly growth in developing countries via the Austrian Development Cooperation. It encourages fair trade and ethical supply chains, supporting responsible consumption and production. Through green finance and international climate investments, Austria contributes to clean energy and climate resilience projects abroad. The country also co-finances sustainable business ventures by Austrian companies in partner countries, fostering technology transfer and job creation. Additionally, Austria participates in EU-led initiatives like the Green Deal and Global Gateway to enhance sustainable infrastructure and development worldwide. Sustainability in construction is also supported via the AGPB (Austria Green Planet Building) initiative. By the way – as I learned recently – the Energy Globe Award, recognized as the world sustainability award, was founded by the Austrian energy pioneer Wolfgang Neumann and is organized by the independent Energy Globe Foundation from Austria.

If Berlin had to borrow one idea or innovation from another country, what should it be — and why?

Innovation is driven globally and it would be difficult to pick a single country as an example. Since I have a strong connection to Japan, as to an idea I would like to refer to the Japanese aesthetic and philosophical concept of Wabi-Sabi, which finds beauty in imperfection, impermanence, and the understated simplicity of natural aging and incompleteness. In my opinion it is a compelling concept for urban development in Berlin because it embraces imperfection, transience, and simplicity as meaningful design and social values—offering a counterbalance to standardized, overly polished urbanism. Berlin, with its layered history, visible traces of the past, and culture of in-between spaces, is already naturally aligned with this mindset. The concept is implicitly present in places like the Tempelhofer Feld, Haus der Statistik and Holzmarkt, where open-ended processes, patina, and temporary uses are appreciated. However, the qualities of the idea behind Wabi-Sabi are not actively promoted – they often exist despite official planning, not because of it. Consciously integrating the concept into urban development could support the creation of sustainable, inclusive, and atmospherically rich urban environments.

Measure

Global Survey Exposes Gap Between AI Ambition and Workforce Readiness

The 2025 Deloitte Human Capital Trends report, based on a survey of 14,000 business and HR leaders across 95 countries, reveals a striking disconnect: while 77 precent agree that integrating AI with human capabilities is essential for success, only 7 percent feel very ready to meet this challenge. Seventy-one percent expect AI to significantly redesign work within 3–5 years, yet just 16 percent say their organizations are actively preparing employees for this shift. Notably, those investing in both human sustainability and technology are 1.4 times more likely to achieve strong human and business outcomes, highlighting the urgent need to bridge the gap between AI ambition and workforce preparedness. For deeper insights and the complete set of trends, explore the full Deloitte 2025 Global Human Capital Trends report.

Read

German and French Finance Chiefs Push for Startup Investment Overhaul

German Finance Minister Lars Klingbeil and French Economy and Finance Minister Éric Lombard have called for a major overhaul of Europe’s startup investment strategy in a joint article, warning that the continent lags behind the U.S. and China in competitiveness. To close the gap, they urge greater and smarter public and private funding focused on decarbonization, digitization, and defense technologies, alongside reduced bureaucracy and better coordination among EU member states. The ministers announced a new expert panel, led by Christian Noyer (former Banque de France Governor) and Jörg Kukies (former German State Secretary for Finance), which will propose concrete measures to strengthen financing for European startups and scale-ups. Their goal is to create an environment where Europe’s innovative firms can grow into global champions. Read the full article on Handelsblatt: “Get More Out of Every Euro Spent”.

Listen

EU Confidential – The €2 Trillion Question in Europe’s Budget Fight

In the latest episode of Politico’s EU Confidential, host Sarah Wheaton and Brussels experts Gregorio Sorgi and Bartosz Brzeziński break down the politics behind the European Commission’s nearly €2 trillion budget proposal for 2028–2034. The discussion clarifies which sectors stand to gain notably defense and competitiveness, with a fivefold funding increase and which face cuts, such as agriculture, sparking fierce debate. As EU leaders begin negotiations, the episode probes Ursula von der Leyen’s leadership amid a chaotic rollout and assesses how internal political tensions could shape the final deal. The conversation then turns to transatlantic trade, dissecting Brussels’ options in response to threats of 30% U.S. tariffs on EU exports, with analysis from Politico Pro’s Camille Gijs, Ari Hawkins, and Doug Busvine. For a timely, insider view on the EU’s budget battles and geopolitical challenges, tune in here on Apple Podcast.

Watch

Berlin - Europe’s Least Capitalist Capital

Berlin may be Germany’s political center, but it sharply deviates from the classic capital city blueprint by having little impact on the national economy. This documentary examines how Berlin’s 20th-century split, post-WWII industrial decline, and Cold War division broke its economic momentum, turning the city into a magnet for artists, squatters, and counterculture drawn by affordable space and creative freedom. While efforts to transform Berlin into a financial hub faltered, tourism and alternative scenes flourished, with the city embracing its “poor but sexy” image. Recent decades saw a startup boom and rising investment, yet gentrification now threatens Berlin’s unique cultural fabric as it seeks to balance growth with its distinctive identity. For a deeper dive into Berlin’s economic paradox and cultural tensions, watch the documentary on DW.

Highlighted
  • Japan’s Long-Dominant Party Suffers Election Defeat as Voters Swing Right. nytimes.com
  • The World Is Entering a Dark New Era of Hydroterrorism. foreignpolicy.com
  • The European single market: restarting the perpetual revolution. bruegel.org
  • BRICS and the future of strategic non-alignment. iiss.org
  • Philipp Ackermann, Germany’s Ambassador to India: „Germany doesn’t understand India enough — yet it is our most important partner of tomorrow.“ diplo.news
Learn

Schengen at 40 - Resilience, Challenges, and Key Lessons for Diplomacy Berlin

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.

Know

Transatlantic Ties Beyond Goods Trade: Why Services Matter More Than Ever? | Kiel Institute Policy Brief No. 193 | July 2025

Transatlantic economic ties now pivot as much on services as on goods, with digitally delivered sectors like intellectual property, business, and IT growing rapidly sometimes outpacing traditional goods trade, yet remaining undervalued in public debate and policy negotiations. The U.S. consistently runs a services trade surplus with the EU (€109 billion in 2023, according to Eurostat), driven by American strengths in finance, tech, and IP, while Europe’s goods trade surplus (€157 billion in 2023) reflects its industrial base. Despite some data discrepancies, the overall transatlantic trade relationship is remarkably balanced, with the difference between EU and U.S. exports standing at just 3% of total trade in 2023. The Kiel Institute Policy Brief No. 193 argues for reducing intra-EU services barriers, using services as a diplomatic tool in EU-U.S. talks, and, if necessary, deploying strategic measures like digital taxes or privacy rules emphasizing that services are now central to competitiveness, innovation, and the resilience of the transatlantic alliance. For the full analysis, see the Kiel Institute’s policy brief (PDF).

Follow

For those working at the intersection of diplomacy, policy, and international business, we recommend following the Körber-Stiftung, organizers of the annual Berlin Foreign Policy Forum. Their channels offer timely analysis and expert commentary on Germany’s evolving role in global affairs, especially relevant in times of domestic and international challenge. Expect insights on economic diplomacy, European security, and Germany’s partnerships worldwide directly from one of Berlin’s most respected and influential platforms for international dialogue. Stay informed by following them on LinkedIn and watch their website for updates.

Attend

International Conference on Investment Analysis and Financial Asset Management (ICIAFAM-25), Berlin
The World Research Forum invites you to the International Conference on Investment Analysis and Financial Asset Management (ICIAFAM-25) on July 28–29, 2025 in Berlin. This global gathering brings together researchers, industry professionals, and students to present and discuss the latest research, innovations, and best practices in investment analysis, financial asset management, sustainable finance, portfolio management, investment strategies, and risk assessment with both in-person and virtual participation options for optimal flexibility and engagement. For agenda, venue details, registration visit the World Research Forum conference portal.

80 Years Since the End of the War – Outdoor Exhibition at the Allied Museum
From 6 May to 5 October 2025, the Allied Museum at Clayallee 135 opens its outdoor spaces to a special exhibition marking 80 years since World War II ended in Europe. Three large thematic cubes guide visitors through the German capitulation, the arrival of Allied forces, the immediate postwar chaos, and the Potsdam Conference. The exhibition not only revisits the Allies’ transition from occupiers to Cold War partners but also reflects on the enduring themes of peace, democracy, and international cooperation that shaped modern Berlin. For program updates and details, see the official VisitBerlin event page.

Eat and Drink

Papillon – A Solid Choice for Diplomatic Dining

Papillon, located next to Berlin’s Zoological Garden, is a well-executed mix of restaurant and bar, combining international and Mediterranean cuisine with a stylish mid-century design. The menu focuses on seasonal ingredients, with standout dishes like beef tartare with bone marrow, oysters with ponzu, and grilled octopus with date glaze.

Designed by New York-based Dan O’Kelly, the interior offers a professional yet relaxed setting. In the evening, the atmosphere shifts toward a livelier crowd without losing its elegance, making it suitable for both formal and informal occasions.

The bar is well-regarded, particularly for its cocktails; the Espresso Martini with Eminente Rum is a regular favorite. Located near the Bahnhof Zoo with valet service, Papillon is a reliable choice for hosting international guests who want to experience a modern side of Berlin.

Buy

Stay Dry with a Unique Treasure: With Berlin’s rainy forecast, skip the disposable umbrella and invest in a true masterpiece from Schirm mit Charme, the workshop of Rolf Lippke, one of Germany’s last master umbrella makers. Each piece is handcrafted in Berlin to order, using the finest materials for durability, elegance, and standout style. For full details or to request a custom order, visit Schirm mit Charme’s official website.

Work

Linguistic and Educational Cooperation Coordinator (French Embassy, Germany): The French Embassy in Germany is seeking a coordinator to lead its linguistic and educational cooperation strategy. Working under the ambassador and cultural counselor, the role involves overseeing a national network of language attachés, promoting French language education, supporting bilateral programs (such as the Élysée and Aachen Treaties), and developing initiatives like FranceMobil and DELF integration across Germany. Candidates should have relevant experience in education or cultural cooperation.

Senior Accountant – UAE Embassy, Berlin: The Embassy of the United Arab Emirates in Berlin is seeking a Senior Accountant to join its finance team. This role involves managing financial reporting, overseeing compliance, and supporting the Embassy’s overall financial operations.

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