The potential of the Italian-German cooperation for the European Union

Key research question:
What is the potential of the Italian-German cooperation to steer the path of the EU in the current global situation?

Introduction

Germany and Italy are two of the major industrial powers in the European Union. Their cooperation is characterised by similar goals and challenges that are likely to affect their political paths. Both countries are G7 and G20 members and their industrial landscapes are strictly intertwined. Despite domestic differences, it will be argued, that the two countries have the means to steer the economic and geopolitical trajectory of the European Union by working together on specific areas that can make the EU more independent from external powers and more competitive in world trade, industrial innovation and economic development. This article will explore some key aspects of the current German-Italian political and economic cooperation, the common global challenges, and the cooperation opportunities that can be developed by addressing such challenges bilaterally and within the EU. The proposals presented in this article are reflections that have been developed in the aftermath of the Spinelli Forum 2026.

The Spinelli forum is a bilateral initiative designed to strengthen the Italian-German relation by encouraging the formation of a network of young policymakers and experts in the fields of politics, economics, media and research. The program brings together selected young professionals (aged 25 to 35) to discuss relevant European challenges, and to attempt to reflect on potential solutions. The proposals are monitored by experts and policymakers, and after the conclusion of the working sessions, the participants can present them to the German and Italian government officials to receive feedback. The program and the working sessions are organised and supported by the Institut für Europäische Politik and the Istituto per gli Studi di Politica Internazionale. The topics discussed in the 2026 edition were: EU Defence and Security,Trade and Economic Growth, Energy Resilience, Artificial Intelligence.

Favourable conditions for a closer partnership

The current global context is characterised by a series of trends that have pushed the Italian and German governments to strengthen their cooperation within the European Union, creating thus opportunities to further develop strategic sectors and to promote an industrial and economic advancement of Europe. Beyond being two founding members of the European Union, Italy and Germany are also the main industrial powers of the Union and boas sectors of high relevance and with considerable innovation potential. The signing of the Protocol on a German-Italian Plan of Action for strategic bilateral and EU cooperation, in which aspects such as competitiveness, energy, defence and even cultural partnerships are introduced as key areas, underlines the willingness of the two governments to work together to promote a new political and economic path for the EU in a crucial historical moment.

The Old Continent faces gradual decline and risks economic and geopolitical irrelevance, making it highly exposed to external economic pressures and dependencies. One can view various options for Europe to react to these challenges, together with potential benefits and drawbacks linked to such options. In this context, while the French presidency threatens to resort to severe measures such as the Trade Bazooka to address economic pressure from the USA, the Italian and German governments prefer a more diplomatic and pragmatic strategy (as seen in other controversies with the USA such as the Greenland case). Due to the relevance of the USA as exports destination, both Italy and Germany wish to avoid an open confrontation with Washington, and seek compromise despite obvious disagreements (such as the recent controversies between Meloni and Trump). Another factor bringing Italy and Germany closer is indeed the decline of the relationship both countries have with France. Once the pillar of Europe, the Franco-German relation has recently declined due to various disagreements such as France’s undermining of the Mercosur trade deal, tensions concerning a Franco-German 1000 billion fighter jet program, disagreements on how to use frozen Russian assets due to legal and financial reasons, and finally the vision of the transatlantic relationship the two countries wish to promote.

In this context, Meloni’s Italy could be a key ally for Berlin and can take over in specific areas where France is not willing to cooperate. Naturally, France is still an indispensable partner for both Rome and Berlin, but a closer Italian-German relation in certain areas would complement other cooperation initiatives with Paris, achieving thus a stronger EU leadership for the three countries. Furthermore, the Italian-German couple does not only have the industrial potential to address the critical areas of the EU’s economic and innovation worldwide, but it can also mobilise the political willingness within European institutions to pursue goals that are relevant for the two countries’ European and global strategies. This potential and the consequent geopolitical responsibility have been clearly described by German Foreign Minister Johann Wadephul’s statement “When Berlin and Rome work closely together, it is not out of routine, but out of conviction, because Europe’s future, freedom and power to shape the world depend on it.”

Relaunching the EU as an independent global actor: key industrial sectors

In order to become an independent global actor able to express itself with a single voice, the EU needs to reduce strategic dependencies on external powers such as the USA and China in fields such as critical resources, trade and military. In this context, Italy and Germany can use their political weight within the EU to promote de-risking policies while maintaining beneficial trade deals with external partners whenever convenient. De-risking should not mean a radical separation or interruption of trade between the EU and an external partner, but rather a diversification of the risks by promoting multiple partnerships with different external actors to have a wider range of possibilities in case one external partner decides to weaponize trade or to apply economic pressure to reach its goals. Such trade vision would preserve the EU’s natural vocation for multilateralism and avoid isolationism.

Naturally, the EU has to be reinforced at the internal as well as the external level. Political and economic fragmentation is not only a risk for the single European countries, that can easily be surpassed by external competition in innovation, trade and industrial output, but also for the EU as it loses global relevance and is politically blocked by a lack of decisiveness. For these reasons, the Italian-German cooperation should focus on the coordinated development of sectors that can bring European industrial potentials together and foster a “Made in Europe” brand of industrial initiatives. The energy, innovation and defence sectors are certainly the most relevant ones as they are precisely the sectors in which Europe should achieve a higher level of independence and competitiveness against external powers. Joint ventures such as the Leonardo and Rheinmetall partnership -designed to build a European powerhouse for land defense systems- should be taken as model to launch similar partnerships that involve national flagship sectors to work together in order to achieve strategic industrial results. Naturally, these industrial cooperation initiatives should be designed to exploit the industrial excellencies and assets of each country involved. This template could be one valuable path to develop key strategic sectors for the European Union. However, political will is key in realising such project. Various similar projects have been presented during the last years (such as Competitiveness Compass, Clean Industrial Deal, or the Economic Security Strategy) but with the current mutual bilateral relation between two main industrial actors, political backing is likely to be more effective in the EU and among main industrial sectors across the continent. One can imagine the development of industrial clusters divided by sector and expertise to address the industrial areas where Europe is more dependent on external powers and where a considerable development would allow a stronger negotiating position in trade, military potential, innovation and global energy market.

Another relevant aspect the Italian-German cooperation should address is the role of the EU as a global economic development force. This aspect would present the EU as a valid alternative to major geopolitical powers such as China, the USA, Russia and Turkey in world regions with growth potential and of geostrategic relevance – due to natural resources, key locations between trade routes or increasing populations. A coordination of ambitious projects such as the Mattei Plan and Germany’s renewed Africa policy guidelines could promote a common European action in the region and the development of a series of industrial partnerships in key sectors – renewables, solar energy, high tech, pharma and infrastructure development. Following the template presented above, EU countries could follow such initiatives and support the development of multilateral cooperation projects that would create stronger industrial alliances.

Conclusion:

The potential of the Italian-German cooperation represents not only a valuable opportunity for the two countries involved but for the entire European Union. Given the two countries’ similar industrial landscape and integrated value chains, they still represent one of the main industrial bastions of the EU and their partnership can bring considerable results in key manufacturing and innovation sectors. The cooperation is also valuable for other EU members, which can contribute with their own industrial strengths to the development of a European industrial structure built around the Italian-German pillar. The contribution of highly innovative actors such as France, the Netherlands and Nordics can support the development of the EU industrial output, making the EU more compact internally and a more competitive externally. Furthermore, current global trends such as the Cold War climate, economic pressures from East and West, and the rise of new competitors represent a unique opportunity for the Italian-German partnership to promote a model of industrial and trade cooperation that other EU members can follow. The current global climate and growing multipolarity are then to be seen as an opportunity for Europe to become more united and protect its key strategic industrial and trade interests. The Italian-German partnership can thus be one driving force of a unified European industrial and trade development revitalisation. In the words of Italian philosopher Umberto Eco “With the rise of external powers Europe will feel besieged but united.”

Questions:

1. Can the proposed model be applied to other cooperation initiatives in the EU or elsewhere?
2. What can some obstacles be for the accomplishment of a stronger Italian-German cooperation?
3. How could such key industrial cooperation model evolve in external countries?

Additional readings

1. Ferri, F. (2026, January 27). Italy and Germany sign joint declaration to boost research and academic cooperation. ErasMAG. https://erasmag.eu/italy-and-germany-sign-joint-declaration-to-boost-research-and-academic-cooperation/ +
2. Siefert, A. (2026, January 26). Defense: Germany and Italy decide on closer cooperation. Table.Briefings. https://table.media/en/europe/news-en/defense-germany-and-italy-decide-on-closer-cooperation
3. Yours Magazine. (2026, February 8). Germany and Italy—From trade partners to strategic coordination. Yours Magazine. https://www.yours-media.com/germany-and-italy-from-trade-partners-to-strategic-coordination/