In Berlin, top managers and economists outline how economic growth can be stimulated: investments in future technologies, speed, courage - and more working hours.
Berlin. Economists and leading German entrepreneurs called for more courage and speed at the German summit held by Handelsblatt and Wirtschaftswoche in order to bring the German economy forward again. The head of Deutsche Bank, Christian Sewing, spoke to around 250 guests in Berlin in favor of strengthening the European internal market and a strong positioning of Germany within Europe as a “locomotive in global trade”.
Sewing described the “Made for Germany” initiative, which was launched a year ago and is intended to strengthen Germany as a business location, as a good approach to bringing business and politics more closely together. The CEO of the consumer goods group Henkel, Carsten Knobel, focused on reliable framework conditions and competitive energy prices in his vision for the future.
Economist Isabella Weber also called for energy prices to stabilize. In addition, more investments must be made in renewable energies. Marc Billeb, spokesman for the management of PwC Germany, summarized it like this: “We need more investments in the world of tomorrow.”
Target: 40 working hours per week
According to Sewing, this also includes working more in Germany, otherwise we would no longer be able to keep up worldwide. Knobel sees it similarly: “Towards 40 hours per week is not a bad value.”
Harvard economist Ludwig Straub makes it clear where Germany currently stands: “Today Germany is clearly in a phase of stagnation.” Germany has had a lost decade, among other things because of the rise of China, the aging of the population and the war in Ukraine.
Nevertheless, the Federal Republic is not in a hopeless situation: “Our economy can definitely grow.” To achieve this, companies must be able to react flexibly to new challenges.
According to Straub, individual factors are particularly important so that Germany can exploit its potential again and open up new growth areas. The professor of macroeconomics includes deregulation and de-bureaucratization as well as a broad-based industry and intelligent tax investment incentives.
Among other things, he recommended reducing the burden of proof, quicker building permits, making it easier to set up a business and making German dismissal protection more flexible, especially for high earners.
Straub gave an example that Germany should use as a guide: its neighbor Switzerland: “If we orient our growth towards Switzerland, then the people in our country would be noticeably better off.” Ultimately, Straub advised acting courageously; then a miracle would not be necessary. According to the Federal Statistical Office, Germany grew by a total of 0.2 percent last year, Switzerland by 1.6 percent.
Anderson: More mission, more personal responsibility
Bayer boss Bill Anderson observes a phenomenon in Germany and other Western nations: People used to be proud of the country's technological achievements and how they contributed to them with their own achievements. Today there is more of an expectation that the state will fix everything. That has to change again, said Anderson at the Germany summit.
Two things are necessary for this: “You need a clear mission and you have to strengthen people’s personal responsibility.” Anderson has implemented this at Bayer in recent years and completely changed the internal working methods. Instead of hierarchies, operational decisions at Leverkusen are made in teams; employees should see themselves as owners.
A country like Germany also needs a mission that everyone knows and can identify with, said Anderson. People should feel that they can work on this common mission and have responsibility.
The Handelsblatt Research Institute worked out what the German economy can achieve in a joint study with the consulting firm Oliver Wyman. Despite all the location problems, the opportunities for the German economy are good. “The conclusion is wrong that Germany’s economic best times are inevitably behind us,” it says.
Germany doesn't win where it copies others: not with the next universal language model, not with the cheapest electric car, not with the cheapest humanoid robot.
Study outlines eight growth areas
According to the study “Germany: Land of Opportunities”, it is important to recombine existing skills. It identifies eight growth areas with which Germany could achieve economic recovery:
Industrial artificial intelligence: German companies in particular, with their large installed base of machines and systems, have the opportunity to establish new business by using data for industrial processes.
Physical artificial intelligence: Technologies such as robotics, autonomous mobile systems, industrial software, digital twins as well as sensor and control technology are drivers of innovation.
Semiconductors and photonics: The combination of chips and the technical use of light is considered a promising technology for laser processing, optical measurement technology, medical technology and quantum technologies.
Automotive industry: For long-term success, the German automotive industry does not have to lead every mobility innovation. While the brilliance of the engine, transmission and chassis used to count, today it is the electrical storage, software, energy system and life cycle.
Healthcare: The healthcare industry of the future will be determined by a closer integration of services, data, AI, robotics, pharmaceuticals, biotech and care. This can create new ecosystems.
Climate protection and energy: The restructuring of the energy system strengthens Germany's resilience. At the same time, valuable technological know-how is created in areas such as mechanical engineering, electrical engineering, plant engineering and automation.
Defense and security: The new geopolitical framework brings new, independent growth areas: defense technology, aerospace, cybersecurity and digital systems for crisis management.
Basic industry and circular economy: Energy suppliers cooperate with companies from the chemical, steel and cement industries to build hydrogen, electricity and heat networks. At the same time, the use of CO2 as a raw material, for example for synthetic fuels or chemical raw materials, creates new industrial opportunities.
There is no lack of knowledge in Germany. The problem is the implementation. The new combinations described cut across existing industry, company and departmental boundaries. “So far, no one is responsible there,” says the study. “Germany’s weakness lies less in individual competencies than in their combination.”
