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German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische Wissenschaft Georg August Universität Göttingen Paper for Moskau/MEF March
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German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Dec 22, 2015

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Page 1: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and

Shifts of Paradigm

Prof. Dr. Peter W. SchulzeInstitut für Politische WissenschaftGeorg August Universität Göttingen

Paper for Moskau/MEF March 2014

Page 2: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Options in EU-Russian Relations

1. Integration 2. Status quo 3. Modus Vivendi4. Revision

pws nov 2013 wien jur fak

Page 3: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Conflict Reduction -Cold War: Change through Rapprochement

• Germany‘s New Eastern policy: Strategic objectives: normalisation, improvement of social conditions and freer movement of German citicens from the GDR to West Germany;

• Instruments: acceptation of the Status quo , including post second world war borders, deescalation of conflicts and move toward normalisation of relations between Eastern and Western European states

• „Change through Rapprochement“ (Egon Bahr, 1963)• This principle was applied from the 1970s until the new

Millennium• 2005-2009: SPD/CDU black-red coalition: Partnership in

Modernisation: „Change through building networks“

Page 4: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Challenges to Germany‘s Eastern Policy

1. Crisis of the EU and power shift amway from the French-German Tandem toward Berlin‘s role as a „reluctant hegemon“

2. Quality of US-Leadership is vaning; Washington needs Europe as a „strategic partner“ to shoulder challenges stemming from power shift in the international system

3. Struggle of the future: who controlls Germany- Russia a mischief-maker intruding the transatlantic relationship

Page 5: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Gaspipelines to EU-Europe

Page 6: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

The Dominance of the Ukraine as a Transit Country for Russian Gas

Page 7: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Preisentwicklung Rohöl, Folgen für Perestroika und Transformation

Oil prices, consequences for reforms in the 1980s and 1990s

Page 8: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

GDP 201- 2014 (est.)

Page 9: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Industrial Production acc. to SectorsJan.-to July 2013

• Industrial production : overall 0%a. Metallurgy -0,9%b. Machines/Investment goods -6,5%c. Electronic, Optics -5,3%d. Chemical goods 3,3%e. Rubber, Plastics 7,8%

Page 10: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Public debt

Page 11: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Annual New Public Debts

Page 12: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Investments: incoming

Page 13: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Total Investments 2010-2012Countries of Origin, Sectors

Page 14: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

GDP in International Comparison

Page 15: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russian GDP in intern Comparison

• GDP growth in 2012 of 3,4% will be reduced in 2013 to 1,8%;

• Only in 2014 there will be growth decline to –minus 0,7 %, eventually reaching 2,7% in 2017.

• In comparison:• China 2012 , growth of 7,8% • Indian growth of 5,4% Russia on the lower rang in BRICS-grouping

Page 16: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Trade : Germany‘s Exports to Russia by economic sectors

Page 17: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russia‘s Exports to global markets

Page 18: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Imports to Russia

Page 19: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

German direct Investments in Russia

Page 20: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russian Trade: Imports according to world regions

Page 21: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Exports according to world regions

Page 22: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Trade EU -27 with Russia: Export/Import of Goods /EU/Russia

Page 23: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russian Imports according to products

Page 24: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russian Exports according to world products

Page 25: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Foreign Trade Proportion of Customs Union with Member States 2008 – 2011, % of trade)

48,1 48,1 48,646,4

18,8 18,0 17,6 16,2

7,3 7,7 6,9 7,5

0

10

20

30

40

50

60

2008 2009 2010 2011

Belarus Kasachstan Russland

Zagorski 13.07.2012

Page 26: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

Russia’s trade with CIS 1994 – 2010Bill. USD and % of Export and Import

0

10

20

30

40

50

60

70

80

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Ausfuhren Einfuhren Anteil an Ausfuhren Anteil an Einfuhren

Page 27: German-Russian Relations as a Factor of EU‘s Eastern Policy: Goals, Consequences and Shifts of Paradigm Prof. Dr. Peter W. Schulze Institut für Politische.

EU and Russia: Trade with the Ukraine2012