THE ROLE OF GERMAN ECONOMY IN EUROPEAN UNION INTEGRATION

Abstract

This article analyzes the role of the German economy in the process of European Union integration, focusing on its influence on trade, economic governance, industrial development, and regional stability. As the largest economy in the EU, Germany plays a central role in shaping intra-European trade flows and strengthening economic interdependence among member states. The study highlights Germany’s contribution to policy coordination within the Economic and Monetary Union, particularly through its emphasis on fiscal discipline and price stability. It also examines Germany’s role during major economic crises, where it acted as both a stabilizing force and a key decision-maker in collective responses. Furthermore, the paper discusses Germany’s impact on technological innovation, global value chains, and the green transition within the EU. The findings suggest that while Germany significantly supports deeper integration, its dominant position also creates structural asymmetries and policy tensions that must be carefully managed to ensure balanced and sustainable development across the Union.