EU’s most powerful state Germany believes the 2025-end deadline for the India-EU FTA, potentially the largest deal of its kind in the world, can be met, leading to an agreement that would be a game changer for many of its industries while also attracting more investments into India. In an interview to TOI, German ambassador Philip Ackermann said the last round of FTA talks, held after European Commission President Ursula von der Leyen’s visit last month during which the deadline was announced, was “quite fruitful and better than the previous rounds”.
As Chancellor-in-waiting Friedrich Merz looks to preside over a “sea change” in Germany’s security policy, shunning longstanding austerity measures to dramatically boost defence spending amid fears of a US retreat, the ambassador ruled out any dilution of Berlin’s commitment to the Indo-Pacific, saying it will continue to be actively involved in the region, including through potential joint military exercises. The conservative leader, who is expected to be elected chancellor next month as a new coalition government takes over, is seeking a stronger European focus on defence and more “independence” from Donald Trump’s America.
“Progress on the FTA was one of the substantive outcomes from European Commission president’s visit. The end-of-2025 deadline now seems possible. You have to now reach that goal and I understand the last round of talks after the visit was quite fruitful and was better than the previous rounds. I am cautiously optimistic that we will achieve a good agreement. Germany is hugely interested in this agreement. I think it would be a game changer for many of our industries. It would certainly attract more investment to India. We feel that it would change important parts of our economy,’ said Ackermann.
Asked about the Indo-Pacific and India-Germany ties under Merz, the ambassador said Germany has been very clear that Indo-Pacific is an important area for security and trade where India has turned out to be a very good partner. “We think along the same lines, and you can be sure that Germany will continue to be committed to the Indo-Pacific. Like you saw last year with the Tarang Shakti air exercise. Germany will continue to be active along with European, American partners and Indian partners. India with common navy and air force exercises is growing closer to European security and armed forces,’’ said Ackermann, adding there’s a clear continuity now in Germany’s India policy and the 2024 ‘Focus on India’ paper will prevail.
Asked about Trump’s indifference to Europe and conflicting signals on NATO, the ambassador said there was a clear signal from Washington that it would like to see European countries spending more on defence but added Europe-America alliance isn’t in any imminent danger. Describing Merz as a Transatlanticist, Ackermann said the new government will make a lot of efforts to keep that alliance meaningful.
“Outside Europe, America is our closest ally and we don’t see that changing quickly. At the same time, we have to take into account the discourse in Washington is now different from what it was earlier and we have to adapt to that. Europe has to spend more. You have seen von der Leyen’s Rearm Europe programme that means defence production must increase and small countries should pay more. We feel threatened. Russians have shown they have no scruples, or shame in invading other countries. Why should they stop at Ukraine? It’s important to be better prepared,’’ said the ambassador, talking about what he called a sea change in Germany’s defence policy.
While backing all efforts to end the war, he said Russia had basically not accepted the ceasefire proposal and it’s important to understand there can be no peace without Ukraine. “And I think Americans also understand that as they have involved Ukraine in the latest talks in Jeddah,’’ said Ackermann.