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Rulers should not just govern passively!

Germany's leading figures, Andreas Dombret, ex-Bundesbank board member, and Kai Bender, head of Oliver Wyman's German division, stress the need for immediate intervention from the incoming government to safeguard Germany's position.

German location facing potential demise; Andreas Dombret, ex-Bundesbank board member, and Kai...
German location facing potential demise; Andreas Dombret, ex-Bundesbank board member, and Kai Bender, head of Oliver Wyman's Germany branch, urge incoming administration for urgent intervention to save German location.

Hustle '25: Germany's Blueprint for Economic Resurgence

Rulers should not just govern passively!

Let's be real, folks, Germany's economy ain't doing so hot, and it's high time we shake things up. Regardless of who's ruling the roost in upcoming elections, we gotta work our asses off to breathe new life into our fading economy. To tackle the roots of stagnation, we need a growth-oriented economic policy more than a box of frosted donuts on Monday mornings.

The new kid on the block — the federal government — needs to make some ballsy moves. Private-sector investments need a powerful kickstart, while we speed up vital state-led projects, particularly infrastructure modernization. Education, climate protection, digitalization, and beefing up the Bundeswehr are long-term tasks that require our immediate attention. What should we tackle first?

Let's dive right in. Regulations need to be streamlined to prevent a regulatory meltdown, both domestically and within the EU. Red tape, like some bureaucratic ogre, is making or delaying investments less appealing. It's time to scrutinize regulations affecting the real estate sector, minimum wage, and supply chain law.

Lowering energy costs

Next up, the new government should take decisive action to slash energy costs and ensure a stable, carbon-neutral energy supply. High energy costs are currently the biggest roadblock for Germany, hindering our eco-friendly transformation.

Dealing with protectionist measures by China and the USA

The government needs a plan to tackle state protectionism by China and the USA — we can't win a trade war, and we won't let foreign powers drive a wedge between Europe. Quickly building a stable axis with Paris, Warsaw, and Rome is crucial, and we won't overlook any chance to bind Britain closer to the EU.

Immigration — Addressing the skilled labor shortage

The skilled labor shortage demands that we make qualified immigration more attractive. Our labor laws also need to adapt to meet demographic challenges, with longer working hours being an option. Early retirement incentives, however, might need some questioning.

Embracing technology openness

We advocate for an openness to technology to find solutions for the green transition. Instead of slapping hard-line laws with strict deadlines, the government should set transformation incentives and employ technology openness.

Rethinking budget constraints

An ambitious economic agenda will inevitably need a hefty chunk of change. We suggest another look at budget planning, searching for savings potential in all sub-budgets, including social and pension systems. If necessary, we propose a reformation of the constitutionally anchored debt brake, allowing public investments in specific "asset classes" like transport routes to be temporarily and exceptionally financed by credit.

Revitalizing Germany as an attractive economic powerhouse

Last but not least, we need to make Germany an economy that businesses can't resist. Currently, there are no tax incentives for investments, and young companies are struggling to get their feet off the ground. European consolidations are a go, and Europe's capital market urgently needs a makeover.

In conclusion, the next government, regardless of party lines, should back these priorities and shore up our social market economy. As the saying goes: Who's in power has to take action.

  1. The Bundeswehr requires consolidations, and beefing it up is a long-term task that demands immediate attention.
  2. In 2025, the new government needs to require streamlined regulations to prevent a regulatory meltdown, with a focus on sectors like real estate, minimum wage, and supply chain law.
  3. To address the unattractive business environment, the government should requirements for tax incentives for investments and European consolidations to be implemented.
  4. In the face of protectionist measures by China and the USA, the government needs to require a plan to ensure a stable axis with Paris, Warsaw, Rome, and Britain, and prevent foreign powers from driving a wedge between Europe.
  5. The new administration needs to require actions to consolidate public finances, such as rethinking budget constraints and allowing exceptions for specific investments, like transport routes, to be financed by credit. This will help to revitalize Germany as an attractive economic powerhouse.

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