The COVID 19 pandemic and the energy crisis have left their marks in Europe and especially in Germany, given its high share of energy-intensive industries. However, the projection of Germany’s potential output points to clear obstacles to growth in the coming decades, irrespective of the current economic weakness.
In our latest #ESMLunchTalk, Veronika Grimm, Professor of Economics and Head of the Chair of Economic Theory at Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU) and ESM Chief Economist Rolf Strauch talked about the current German economic outlook and the future challenges that will affect this country and the EU.
Demographic ageing: to dampen labour scarcity, immigration policy needs to be reformed and incentives to work need to improve.
Declining productivity growth: innovation - such as AI - and increasing investment activity within a completed capital markets union can accelerate an efficient reallocation of resource to foster a modernised economy.
Green Transition: expansion of renewables and integrated networks among EU countries are key for a greener and more resilient Europe.
Chapters:
0:00 Introduction
0:58 German economic outlook
5:40 Labour market
11:43 Migration
17:46 Productivity and AI
21:47 Energy sector
32:16 Investments and Capital Markets Union
37:08 German Debt Brake and EU fiscal outlook
