Germany’s largest business summit to conclude
The Sueddeutsche Zeitung Economic Summit will conclude today.
Representatives from major German and European companies, as well as European Commission President Ursula Von Der Leyen, are gathered to discuss the future of the German economy. Summit attendees will discuss the outcome of the recent federal elections and its implications for the economy and climate protection. Major themes will include the state of Germany’s crucial economic sectors such as the automotive and mechanical engineering industries and food, mobility and housing.
Even before the COVID-19 pandemic, Germany suffered from sluggish economic growth. The next German government, under the traffic light coalition, will likely increase investments in its 5G telecom infrastructure and in promoting the rollout of renewable energy as a means of remaining competitive.
There will likely be a consensus that major investments in digitalization and renewable energy are needed but differing views on how to go about these investments. Currently, the “debt brake” limits national and state budgets to a deficit no larger than 0.35% of GDP. Such investments will benefit the economy in the short-term and help it retain its powerful economic position in the EU. In the medium-term, expect the German economy to experience stable but modest economic growth.
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