German envoy sees Bangladesh's return to democracy as regional signal

German Ambassador Rüdiger Lotz has said the country's ongoing democratic transition carries significance beyond its borders, describing next year's national election as a "powerful signal" for a region where democracy is increasingly under pressure.

In an interview with BSS, the envoy said he was confident that Bangladesh's return to electoral democracy would draw wide regional attention due to the country's strategic size, youthful population and political importance.

"This transition is very important for Bangladesh," he said. "The country is returning to democracy next year ... one of the biggest democratic elections in the world with around 127 million people voting. At a time when democracy is on the defensive in many parts of the world, it sends a very important signal."

He added that Bangladesh's renewed democratic path would be "noticed across South Asia", particularly by young people, and that he was encouraged by the engagement of all stakeholders preparing for the polls.

About the nature of the coming election, the Ambassador said he was encouraged by the level of commitment he had observed among political parties, the Election Commission and the interim authorities.

"The country needs free, fair and participatory elections. Everyone I speak to is determined to make this possible," he said.

He also welcomed Chief Adviser Prof Muhammad Yunus's call for a "joyful election," saying that the idea captured the spirit of democratic renewal currently taking shape.

"I see many different actors preparing seriously for these elections ... that is why I am optimistic that it will be a free, fair and participatory election," he said.

The German envoy praised the interim government for maintaining stability during a volatile period and pushing ahead with institutional reforms under tight deadlines.

"Its performance is commendable," he said. "Expectations were enormously high after August 24, but the interim government has had barely more than a year to implement reforms."

The Ambassador said one of the administration's most notable achievements was stabilising the economy during a phase when many countries experience post-transition turbulence.

"Bangladesh has managed to maintain high growth rates, keep inflation under control and stabilise the currency. That is an enormous achievement," he added.

He also acknowledged the government's efforts in judicial and labour reforms, describing them as "tremendously important" for the country's future.

The envoy said that while major reforms remain pending in areas such as the legal system, law and order, security sector governance and business climate, the initial framework laid out by the interim authorities had been widely appreciated.

"I find it very commendable that the interim government has tried to build consensus across parties, for example through the July Charter," he said.

He called for long-term commitment from all political parties to ensure continuity once a new government is elected.

"The clear commitment by political actors in the July Charter to push forward reforms initiated by the interim government is very important," he said. "It provides a reference point for which reforms need to be tackled and ensures continuity after elections."

The Ambassador said it was "extremely likely" that the European Union would deploy a large election observation mission to Bangladesh.

"It still has to be decided formally, but I am confident that this will happen, and that there will be a substantial German contingent within that EU mission," he said.

However, he said that the mission would require a formal invitation from the government of Bangladesh.

About the competing Airbus and Boeing proposals for fleet renewal at Biman Bangladesh Airlines, the Ambassador said discussions were ongoing.

"There was a commitment in principle by the previous government and such commitments ideally should be followed up," he said.

"Bangladesh will require new-generation, fuel-efficient aircraft. Airbus is very well positioned to meet this requirement," he said.

He said that European ambassadors "stand by Airbus", but put emphasis that final decisions were for Bangladeshi authorities to make. However, he mentioned that "any deal should be fair."

The Ambassador said Bangladesh had strong prospects for attracting more German investment as companies diversify their Asian operations.

"Bangladesh has impressive growth rates, a rapidly emerging middle class and a young, increasingly skilled population. All of this makes it an attractive place to do business," he said.

He said that the country's strategic location at the crossroads of South, Central, East Asia and the Middle East as an additional advantage.

He said he would actively work to encourage German business delegations to visit the country and explore opportunities.

While praising Bangladesh's potential, the Ambassador said certain challenges must be addressed to remain competitive with regional peers such as Vietnam and Indonesia.

"Investors look for clear rules, predictable implementation and legal certainty," he said.

He identified customs procedures, high duties in certain sectors, corruption, and infrastructure requirements as areas needing improvement.

"Companies need legal certainty and regulatory stability. That is closely linked to political stability and the rule of law," he noted.

Diversification beyond textiles, he said, would be essential in the coming years.

The envoy pointed to pharmaceuticals as one of the most promising sectors for German engagement. "Some Bangladeshi companies already produce medicines authorised for sale in European markets. That is significant," he said.

He also highlighted logistics, aviation and medical equipment as sectors with strong prospects. On green energy, he said cooperation had high potential.

"Solar energy, wind energy and improving energy efficiency are key areas," he said. "There is clearly an understanding here that environmental conditions must improve, which creates room for green energy projects and circular economy approaches."

The Ambassador said Bangladesh's pursuit of EU GSP+ benefits after LDC graduation in 2026 would require sustained reforms.

"GSP+ is a demanding process. It requires implementing a significant number of international conventions, particularly in human rights, labour rights, environmental protection and good governance," he said.

He added that while progress had been made, more reforms were needed and that Germany and the EU would work closely with Bangladesh in the coming years.

Diversification and value addition, he said, would be essential for long-term competitiveness.

The Ambassador commended Bangladesh's role in hosting over a million Rohingyas. "Bangladesh has done a remarkable job in providing basic livelihood in a very difficult situation," he said.

He also called for continued international support and renewed diplomatic pressure on Myanmar.

The Ambassador acknowledged long visa waiting times, especially for students and families. "If you have an admission from a German university, you cannot be expected to wait for years," he said.

He said efforts were underway to increase efficiency, expand staffing and modernise the process. "If you ask me again in six months, I hope I will be able to say that the situation has improved considerably," he said.

He said that Bangladesh-Germany relations were poised for significant expansion.

"If we can deepen political ties, expand economic cooperation and make mobility easier, the future of Bangladesh-Germany relations is very promising."