1.7 billion in 70 Countries: Never have so many people around the world exercised their right to vote as in 2024. Yet at the same time, more citizens are questioning the long-term viability of liberal democracy. One key reason for this is increasing economic uncertainty, which not only shapes political decisions but also shifts public expectations of what politics should deliver. As hope for a better future fades, both national and international cohesion are put at risk.

At Stiftung Mercator, we respond to these challenges by bringing together bright minds and passionate bridge-builders. In 2024, we further developed our individual support programs to meet the demands of this new era. Through initiatives like the meet! Mercator Europe Tour, the Mercator College for International Affairs, the Türkiye Europe Future Forum, and the European-Chinese Civil Society Exchange, we empower participants to engage with unknown perspectives and support them in their efforts to address pressing societal issues.

This past year was also marked by major developments in European integration – from the expansion and deepening of the EU’s political agenda to the re-election of the European Commission under Ursula von der Leyen. There were encouraging milestones such as the inclusion of Romania and Bulgaria in the Schengen Area, as well as dramatic political shifts in EU accession candidates including Georgia, Moldova, Serbia, and of course, Ukraine.

Against this backdrop, we see our shared goal of “Connecting Europe” – in collaboration with the European Policy Centre in Brussels – as more than a vision: it’s a call to action. We are responding through pan-European initiatives and new projects focused on strengthening and defending the resilience of the rule of law.

Cheap energy from Russia, security guarantees from the United States, booming trade with China – these former pillars of Europe’s economic model are now under serious threat, especially in light of the re-election of Donald Trump. Europe must broaden its own perspective and assume a more active role in safeguarding global public goods. That’s why, together with partners such as the International Crisis Group, the German Marshall Fund in Turkey, the Indian Observer Research Foundation, and the global think tank network Southern Voice, we are working to help Europe build partnerships for a sustainable “win-win”.

2024 will go down in history as the year the internationally agreed limit of 1.5°C for global warming – set in Paris in 2015 – was deemed to have been exceeded. This makes it clearer than ever: the global reduction of greenhouse gas emissions remains essential if we are to slow down further climate change.

However, the growing geopolitical upheavals we are witnessing are making this task increasingly difficult. International cooperation is faltering, and global consensus is harder to achieve. This makes it even more vital for Europe to stay firmly on the path to climate neutrality. After all, in a volatile global order, climate action is not only a matter of survival – it is also a driver of sustainable economic growth and global competitiveness. Renewable energy strengthens our resilience and reduces our dependence on authoritarian regimes.

In our funding activities in 2024, we focused particularly on supporting partners who are working through the complexities of the transformation process – finding solutions that are both effective and socially fair. One example: a coalition of municipalities and local energy initiatives is developing how municipal heating plans can be designed in close cooperation between local governments and residents.

Beyond its environmental impact, climate action also plays a key role in fostering social cohesion. It can counteract division – but only if managed inclusively and fairly. That’s why we have continued our partnership with the German Caritas Association, a committed advocate for a socially responsible climate policy that actively connects environmental and social goals.

At the Wuppertal Institute for Climate, Environment and Energy, we support a project that seeks to identify potential conflicts of interest and trade-offs in climate policy implementation early on. The goal is to develop political strategies that anticipate these conflicts – and incorporate viable solutions into policy design from the outset.

At the same time, we have significantly expanded our focus on transformation finance – a key pillar of our funding strategy well beyond 2024.

The past year was shaped by the implementation of major EU digital regulations, ongoing geopolitical shifts, and renewed momentum for digital sovereignty in Europe. Through our funding, we are supporting key actors in a still emerging but increasingly vital digital policy ecosystem made up of academia and civil society. In doing so, we help foster both stability and adaptability – as well as new networks that are essential in times of rapid technological change and shifting political priorities.

Our work contributes in multiple ways to bringing the Digital Services Act (DSA) to life, supporting the democratic design of digital public spheres – whether through harnessing new research opportunities or advancing the practical enforcement of user rights.

At the same time, a digitally capable state is essential to effectively implement regulation and manage major societal transformations such as climate action or migration. In 2024, we launched a 4 million euro funding portfolio aimed at driving digital cultural change within public administration at both federal and state levels.

Donald Trump’s re-election has highlighted Europe’s deep dependence on major U.S. tech firms. The concentration of power in the digital economy poses a fundamental challenge to democratic systems. That’s why we fund projects that investigate how Big Tech companies are expanding into areas like the financial sector – and how competition law can be used to counteract their monopoly positions.

While digital civil society is still relatively young compared to other policy fields, it is now entering a phase of diversification and professionalisation. We are increasingly providing long-term institutional support to help it mature. In 2024, for example, we supported the Europeanisation of the Interface think tank (formerly Stiftung Neue Verantwortung) and strengthened the re:publica festival as a central platform for dialogue among civil society, academia, media, politics, and business.

Looking ahead, we remain committed to advocating for a digital transformation that serves the common good. Our new strategy through 2030 focuses on three key areas: democratic digital policy, the digital economy, and a pluralistic discourse on digitalisation.

Elections, surveys, and media analyses over the past year have made one thing clear: a growing number of people in Germany are dissatisfied with the state of democracy. While the majority still fundamentally support this form of government, fewer than half believe that it functions effectively. According to a study by the non-profit organisation More in Common, trust in the political system’s ability to deliver is eroding – not least because many people feel neither represented nor included. More citizens believe that they are being left behind in accessing social, political, and economic opportunities that democracy is supposed to offer.

The early collapse of the last governing coalition and the results of recent state elections in eastern Germany are symptoms of this broader trend. Polarisation is on the rise, while social cohesion is weakening. Yet participation and cohesion are essential preconditions for a functioning democracy.

In 2024, our activities focused on strengthening the participation of socio-economically disadvantaged groups at the local level. Together with Caritas Germany, we are working to transform railway stations across the country into inclusive spaces for community life.

Another key area of focus was on social cohesion in times of growing polarisation. One example: we support the research centre MIDEM in Dresden, which studies political and media polarisation in Europe and develops evidence-based policy recommendations.

We also support civil society in eastern Germany – where political and financial pressures are increasing – through partnerships with Bürgermut, Gegen Vergessen – Für Demokratie, and Aktion Zivilcourage. Particular attention is being paid tostrengthening value-conservative civil society actors in rural areas, who play a vital role in upholding local democratic structures.

More recently, we have expanded our focus to include the protection and resilience of the legal system – a cornerstone of equal opportunity, the rule of law, and democratic governance. In close cooperation with academia, civil society, and public institutions, we have developed a comprehensive framework programme aimed at improving access to justice and protecting the constitutional state against anti-democratic threats.