Economic revolution: State secretaries call for pragmatic cohesion policy!

Economic revolution: State secretaries call for pragmatic cohesion policy!

On July 17, 2025, Dr. Patrick Rapp, State Secretary in the Ministry of Economics, Labor and Tourism of Baden-Württemberg, and Tobias Gotthardt, State Secretary in the Ministry of Economics, Rural Areas and Energy of Bavaria. Central topics such as the future of European cohesion policy as well as security and space policy issues were on the agenda in the discussions. Baden-Württemberg and Bavaria, as renowned high-tech locations, would like to particularly promote their strong industrial base and export-oriented medium-sized businesses. Baden-Württemberg reports that Rapp emphasized the need for a sustainable cohesion policy, which requires more leeway for the regions, less bureaucracy and the promotion of innovation and competitiveness.

Bavarian State Secretary Gotthardt emphasized that it is crucial for European regions to act as direct actors in cohesion policy. This is the only way to avoid delays and unnecessary bureaucracy. This is also reflected in the political objectives of the EU, which aims to promote economic, social and territorial cohesion. Loud Federal Environment Agency The EU's cohesion policy aims to reduce differences between member states and to provide a budget of around 392 billion euros for this purpose in the period from 2021 to 2027.

A committed exchange

During their meeting, Rapp and Gotthardt also spoke with Anne Fort, deputy head of cabinet of Commissioner Andrius Kubilius, about the role of the regions in security and defense policy as well as the prospects for European space travel. Rapp emphasized the importance of a robust security and defense industry, which contributes significantly to crisis resilience. Gotthardt pointed out that Bavaria is a space hotspot, where 40 percent of all German ESA contracts have been awarded in recent years.

In addition, the two state secretaries had the opportunity to discuss the concerns of Germany as a business location with Freya Lemke, head of the DIHK representation to the EU. Topics such as reducing bureaucracy, the attractiveness of the location and the competitiveness of small and medium-sized companies were of central importance. Rapp and Gotthardt called for a more business-friendly EU stance that focuses on strategic goals rather than detailed regulations.

A look at defense policy

This discussion takes place against the background of the new coalition agreement between the CDU/CSU and SPD, which was passed on April 10, 2025. The treaty is entitled “Responsible foreign policy, united Europe, secure Germany” and aims to preserve peace, freedom and security in Europe. The new defense policy includes significant increases in defense spending as well as a clear planning and acceleration strategy for the Bundeswehr. This new strategy promotes the use of the most modern technologies and emphasizes the need for the troops to be fully equipped and operational.

The presentation of the new coalition goals aims to bring about a fundamental change in German defense policy, which should also increase the competitiveness of the German and European defense industry. A significant focus is on strengthening resilience to hybrid threats and cyberattacks. The general modernization of the military infrastructure should also be treated as a public interest.

Overall, it is clear that the topics of cohesion policy, economic location attractiveness and security policy are closely linked. The political actors are betting on setting the course for a stronger future through pragmatic approaches and less centralism.