Tension within the European Union

In May and June 2025, Europeans maintained a consistently high level of support to Ukraine, particularly with regard to military aid. A significant proportion of the weapons provided no longer come from stockpiles but are procured directly through the defense industry. This means that Europe now also leads the US in terms of total volume of military aid provided through industry since the start of the war. The G7 has allocated recently around EUR 6.3 billion in financial aid—largely due to the ERA loan mechanism—according to the latest Ukraine Support Tracker update covering aid reported up to June 2025.

The United States has once again threatened sweeping new tariffs on imports from the European Union, Canada, Mexico, Brazil, and South Korea. A new Kiel Policy Brief by Julian Hinz, Moritz Schularick, Keith Head, Isabelle Mejean, and Emanuel Ornelas argues that a united, proportional response is the best strategy to prevent the breakdown of the rules-based trading system.

Donald Trump's second presidency could drive the United States even deeper towards erratic and authoritarian policies—with global consequences. A recent Kiel Report warns: Germany and Europe must not react by waiting around but must act strategically and decisively.

MEDAM is a research and consulta­tion project that aims to identify and close the gaps in existing research and to develop research-based solutions for European asylum and immigration policies. Starting from an economic perspective, MEDAM looks at the bigger picture seeking better outcomes for all stakeholders.

The global economy is currently confronted with far-reaching changes, including in particular the ecological transformation and adaptation to climate change, which is promoting regional disparities and conflicts.

Exploring the driving forces and diverse impacts of international development processes, focusing on the global and regional interconnections of countries, companies, and the mobility of people, goods, and capital.

The Research Center “International Finance” investigates the risks and opportunities of financial globalization, including political risks.

The Research Center conducts research into the causes and consequences of financial instability, geo-economic developments, the development of income and wealth inequality and questions of political economy.