According to German economist Ulrike Malmendier, the Middle‑East war threatens to erode the already modest growth outlook for the German economy. “The forecasts were never large jumps; they hovered around one percent” she told RTL/ntv. “If we lose even a little more of that, we’ll quickly end up at zero”. Rising fuel prices and tightening supply chains add to the risk, and whether long‑term damage materialises will depend on geopolitical developments and how the government and industry respond. Malmendier stresses the need to strengthen the EU’s single market and to coordinate energy security measures.
She also took aim at continued protectionism within the EU. “The economic community has failed to create a seamless market for 450 million consumers-free of tariffs or trade disputes” she said. “That has unfortunately been overslept”. Her criticism extends to the capital cities of member states, which she accuses of shielding their own industries.
Malmendier praised the new EU corporate form that can be registered in 48 hours as a promising concept, but she says it falls short. “It’s wonderfully digital without a notary, but national registrations and rights still apply. It’s not a true EU company with fewer regulations to spur growth”.
Regarding the German government’s €500 billion special fund, Malmendier views it as largely misdirected. “Investment spending is only slightly above pre‑pandemic levels. Parliament approved it to clear the investment backlog, not for childcare pensions or commuter allowances” she explained. As a result, she estimates that half of the potential long‑term growth has been forfeited.
When asked about her departure from the Advisory Council, Malmendier said, “I speak what the data says, not party lines”. She hopes the council will continue to critique the special fund.
