Stefan Hoops, CEO of DWS, believes Germany is facing a “golden decade” marked by annual growth rates of up to four percent, provided the federal government implements its planned reforms. Hoops told the publication that he is convinced that economic growth of three to four percent could be reached in the 2030s, from which the entire population would benefit, but that this hinges on enacting a major reform package.
Hoops noted that Germany has completed the initial stage: the state has successfully stimulated the economy. He praised the government for achieving its goal, stating, “Respect, the government has achieved exactly what it intended.” However, he stressed that the more challenging phase now begins, requiring reforms in the labor market, pension system, bureaucratic reductions, and other areas, adding that this undertaking “is not fun.”
He emphasized that if Germany wishes to see rising wages, increased investments, and other desired developments, it must raise its potential growth capacity. According to Hoops, this is only achievable through a concerted collective effort.
The DWS chief compared the current situation to past generations facing major challenges, asserting that the imperative today is to restore global competitiveness. Hoops pointed out that Germans work fewer hours than people in other countries and tend to retire comparatively early, and that some of these habits must change. While acknowledging that this is difficult for those affected, he concluded that this joint effort is necessary if Germany is to experience a golden decade over the next ten to fifteen years.
