“In forming a new German government, we now need speed and courage”

Marcel Fratzscher, President of the German Institute for Economic Research (DIW Berlin), comments on the election for the 20th German Bundestag as follows:

Never before has the Federal Republic of Germany been so politically diverse and so divided. No possible governing coalition has been given a clear mandate; each coalition must first earn legitimacy. I hope that the new governing parties will not agree on the lowest common denominator, but will divide the tasks wisely among themselves and have the necessary determination for change. Germany is facing its most difficult challenges in a long time. The new government must quickly take key decisions on climate protection, digital transformation and social reforms. If it fails to do so, Germany's economic prosperity will be at stake and Europe will run the risk of falling behind in the competition with China and the USA. The new German government should therefore find its feet quickly and, in its first 100 days, present a convincing program focusing on future investment, cutting red tape and greater European integration. We need more courage for change. This includes for the new government standing up to the powerful interest groups and overcoming the biggest hurdle to reform - the preservation of vested interests in Germany.