Germany’s economy growth agenda
Berlin (dpa) — Advisers to German Economy Minister Katherina Reiche have called on politicians to undertake fundamental reforms to bring Germany out of a serious structural crisis.
Without a change of course, there is a risk of creeping de-industrialization, societal conflicts and a loss of international competitiveness, according to a paper released on Monday.
Economist Justus Haucap said not all German politicians realize how poorly the country is faring as a business location.
Europe’s largest economy has been in a long phase of weak growth, with consecutive years of recession leaving it lagging behind its neighbours.
Business associations have long recognized structural reasons such as high energy costs and taxes, rising social security contributions and excessive bureaucracy.
Other causes included insufficient growth in productivity, demographic issues, weak investment and too much regulation.
Chancellor Friedrich Merz is counting on a change of mood, especially in the economy, and has announced an “autumn of reforms.”
Reiche’s experts, drawn from economic institutes across the country, proposed a “growth agenda.”
Conrete proposals include streamlining regulations, from data protection to building law; reforming social systems and raising the retirement age. Denmark, for instance, is set to raise the pension age to 70 by 2040.
The aim should not necessarily be to make existing companies and industries competitive through state support, but to enable “growth-oriented structural change.”
Economist Veronika Grimm said that the aim was to achieve technological leadership in important sectors.
She highlighted biotechnology and medical technology, but also nuclear technology. However, regulatory barriers are putting obstacles in the way of companies, she argued.
©2025 dpa GmbH. Distributed by Tribune Content Agency, LLC.
