The coalition government’s recent policy decisions have elicited a cautiously optimistic assessment from leading economic advisor Ulrike Malmendier, although she emphasizes that the measures fall short of what is needed to secure Germany’s long-term economic competitiveness. While acknowledging the value of the recently announced industrial electricity pricing and power plant strategies as positive signals to the business sector, Malmendier stressed a critical deficiency: a lack of focus on fostering future-oriented companies and innovative technologies capable of generating sustainable growth within Germany.
“The initiatives are conceptually sound and could benefit the German economy, provided they are implemented with a demonstrably growth-oriented approach” Malmendier told “Der Spiegel”. “However, the government struggles to consistently prioritize this vision.
The economist’s commentary reflects a growing sentiment that the government’s initial momentum has stalled, with opportunities not being fully exploited. She implicitly challenges Friedrich Merz, leader of the Christian Democratic Union (CDU), to proactively champion significant investments and demonstrate tangible results from the allocated resources.
Malmendier underscored the urgent need for a “lighthouse project”-a bold, transformative initiative capable of igniting a renewed sense of optimism and driving economic advancement. Examples cited included a breakthrough in industrial artificial intelligence or a coordinated EU policy aimed at creating a unified digital start-up market. Without such a visible and impactful endeavor, she argues, Germany risks failing to effectively address the systemic challenges that threaten its position as a global economic powerhouse. The focus, she implied, needs to shift from symbolic gestures to strategically impactful, large-scale investment.
