Democracy at a Critical Crossroads

Have the Walls of Democracy Been Breached?

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The MSC 2025 highlighted the significant work needed on the transatlantic relationship, European defense, and international governance. Once again, it served as a wake-up call for Europeans (for the umpteenth time), urging us to unite, collaborate, and counteract the narratives and actions of global leaders that challenge our democracies.

My initiative to bring together thought leaders from industry, academia, media, and philanthrophy at MSC 2025, featuring this year Anne Applebaum, Timothy Snyder, and Joe Kaeser, proved to be even more timely and urgent than expected.

Long remembered and discussed will be J.D. Vance stunning the audience at the MSC 2025, the passionate statement by Germany’s Minister of Defense Boris Pistorius, and the calm response by China’s Foreign Minister Wang Yi - just days before our national election. You can read the full speech and selected reactions here.

It seems fair to say that the narrative mentioned above, along with that of the new US administration, led to a significant statement from Germany's future chancellor, Friedrich Merz, in our so called "Elephants' Round-Table" (the TV debate where the leaders of parties with representation in parliament participate after the election): “The absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA.” - Friedrich Merz

Merz' comments marked a historic turning point. Words that would have been unthinkable just two months ago. What began as a thought leader exchange on "Empowering Democracy through Leadership" quickly evolved into a discussion on the current state of transatantic relations and whether the U.S. and EU are still on the same team.

The conversation featured a stark assessment of the challenges facing democracy today, particularly focused on unprecedented developments in the United States and their global implications. Rather than theoretical discussions of democratic values, the roundtable evolved into a practical examination of immediate threats and necessary responses. The participants emphasized that:

Defending democracy requires action at all levels - from individual citizens to corporate leaders to government institutions.

Three key takeaways from the engaging discussion:

The State of Democracy in 2025

There’s a concerning picture of democracy's immediate challenges. The greatest threat to democracy was seeen as coming from within the United States itself, citing unprecedented developments in recent weeks. Changes in U.S. federal institutions and foreign policy approaches have raised questions about Americas's democratic path, indicating a potential shift toward competitive authoritarianism.

Leadership in a Post-Democratic World

The argument was made that the "walls of democracy" have been breached. Key factors weakening democratic institutions are:

• The digital world's tendency to create divisive "us vs. them" narratives

• Growing wealth inequality

• Over-reliance on traditional leadership figures while overlooking grassroots action

Corporate & Individual Leadership

The discussion revealed multiple dimensions of leadership in defending democracy with:

• a crucial role of corporate democratic responsibility, arguing against the notion that deregulation is inherently positive

• the need to position the EU as the new leader of the free world

• shared practical experiences from Slovenia, demonstrating how local community-organized resistance through protests and referendums can effectively counter authoritarian tendencies

Concrete practical solutions and challenges were discussed, such as the role of technology companies in enabling democratic erosion and the surprising silence of EU authorities on critical tech-related issues. The discussion highlighted the need for better organization among democratic opposition and stressed the crucial importance of local government and community-based organization were emphasized.

Moving Forward

The tone was notably somber, and the participants emphasized that the situation, while grim, is not hopeless. Pointing not only out challenges but also offering key areas for action, such as:

• Supporting authentic grassroots movements

• Strengthening local community organization

• Reconsidering the role of technology in society, particularly in education

• Maintaining faith in constitutional checks and balances while remaining vigilant

  
  

The rondtable revealed that the challenge of defending democracy in 2025 is very complex and immediate.

The focus has shifted from external threats to internal challenges within democratic societies themselves, requiring new approaches to leadership and civic engagement.

The discussion made clear that while traditional democratic institutions face unprecedented pressures, the response must come not just from established leaders but from engaged citizens at all levels of society. The solution may lie in supporting "whatever unpredictable thing people will eventually circle around" - a reminder that democratic renewal often comes from unexpected sources.