Europe's new reality brings Baku, Berlin closer than ever [ANALYSIS]
Europe's largest economy is undergoing one of the most profound structural adjustments in its post-war history. After decades of building its prosperity on inexpensive Russian energy, strong exports to China and integrated global supply chains, Germany has been forced to rethink the foundations of its economic model.
The figures illustrate the scale of this challenge. Germany's economy contracted by 0.3 per cent in 2023 and by a further 0.2 per cent in 2024, marking the country's longest period of economic stagnation in decades. Industrial production remains below pre-pandemic levels, while manufacturing giants from BASF to Volkswagen have repeatedly warned about rising energy costs and weakening international competitiveness. At the same time, Berlin has committed hundreds of billions of euros to modernising infrastructure, accelerating the green transition and strengthening industrial resilience. So, President Ilham Aliyev's current visit comes at a particularly significant moment for Germany itself.
Against this backdrop, Azerbaijan has become considerably more valuable than simply another supplier of natural gas.
For Berlin, Azerbaijan addresses three strategic priorities simultaneously: energy security, supply chain resilience and access to emerging Eurasian markets. Very few countries can offer all three.
Energy remains the most obvious dimension. Since Russia's invasion of Ukraine, Germany has invested heavily in diversifying gas imports, replacing Russian pipeline supplies with LNG purchases and new long-term partnerships. Azerbaijan's growing role within the........
