Following the final investment summit organized by the federal government, economist Marcel Fratzscher presented further measures and simultaneously issued a warning against German protectionism. Fratzscher, head of the German Institute for Economic Research (DIW), told the “Redaktionsnetzwerk Deutschland” (Wednesday editions) that the “Invest in Germany Summit” and the state’s efforts to attract more foreign investment are positive and correct, but they can only represent an initial step. According to him, Germany requires substantially improved foundational conditions.
He also urged the federal government to reduce protectionist measures benefitting domestic companies. Fratzscher argued that decreasing bureaucracy must ultimately translate into fewer privileges and greater competition for all businesses, whether German or foreign.
As examples of the necessary improvements to the framework, he highlighted increased public investment in research, innovation, and infrastructure, while stressing the need for a stronger Europe. Fratzscher asserted that the economically relevant location for the future will be Europe, not Germany itself. He suggested that there will be no sole “German Champions,” but rather European ones-or perhaps none that can compete globally. Achieving this requires a fully integrated single market, a capital market union, and a banking union.
