Merkel: Germany Should Emulate Asia

The German chancellor has suggested that increasing corporate mergers could help European companies compete globally.

George Friedman |October 10, 2018

German Chancellor Angela Merkel has proposed a new model to help increase the competitiveness of European companies. On Monday, she said she disagrees with the European Union’s approach to corporate organization and antitrust regulation. Similar to the U.S. model, the European policy has been to avoid having one or even a few major players dominate an industry by encouraging competition and limiting corporate mergers. This is in contrast to places like China, as Merkel noted, where a very small number of telecommunications companies provide services for a very large population. Merkel predicted that more mergers in Europe would come in the future. In her view, “if we want to keep up, we’ll have to be able to develop ‘global players.’”

Her argument appears to be that having a few companies dominate the domestic market enables them to grow and become more competitive on the global stage. But her proposal, which French President Emmanuel Macron has already dismissed, is les

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