Guten Tag from Frankfurt, where I had the opportunity to give the keynote Handelsblatt Banking Summit and talk to editor Sebastian Matthes about Germany's and Europe's political and economic prospects today. It comes just after the two state elections in Germany, and I am deeply concerned about the rise of parties with extreme views. We urgently need to discuss the underlying reasons, what it means for our country and how we can counter it. Voters need to be able to see that the solutions to our current problems lie at the centre of society, not at its fringes. At the same time investors who are watching Germany with growing scepticism need to be reassured. And there is one - actually very simple - answer that is central for both groups: growth. Growth is the source of our prosperity and the basis for a functioning welfare state. That’s why it is imperative that we finally implement the reforms needed for future growth. The key points are well-known: affordable energy, less bureaucracy, appropriate regulation, modern infrastructure and better financing conditions. But reforms alone are not enough. For me, it is crucial that we come back to the idea that growth is something positive. This is something foreign investors in particular miss in many areas, both in Germany and across Europe. But we will only succeed if we also change our attitude towards work; if we are willing to work more and harder. For this, we need more incentives that reward work and performance. A shift in thinking is necessary – and here, the economy and we as banks are also called upon: We need to demand change even louder and contribute to shape concrete measures to achieve it. The reputation and future viability of our country depend on it – and we are all responsible. I am convinced that a strong financial sector is of strategic importance and indispensable to the competitiveness of our country. Banks and capital markets are crucial when it comes to managing risks, financing investments, and ultimately enabling growth. Let’s get back to work! ?? Copyright: Handelsblatt #Bankengipfel #DeutscheBank #HBBanken
Spasoje Kostic
6 个月
If investors favour big techs, innovative assets or simply foreign markets, how can you stop them from sending capital abroad and invest more domestically? The other way around, how to convince foreign investors to invest more in Germany if political instability is getting deeper? EU capital markets, with more local focus, is the way forward but not fully in line with the global capital markets priorities. Though, global priorities change as well.
Thomas Walenta
6 个月
It's more complicated; there is no silver?bullet for 'growth'. There are also downsides, such as global warming, demography and migration, and conflicts. I doubt such simple solutions, significantly when they benefit specific groups.
Cay Hasselmann
6 个月
I'm afraid I have to disagree. Unlike in other countries, Germans are retiring and stopping work, leading to a prolonged period of fewer people in the workforce. This trend is exacerbating, and simply advocating for growth could result in overburdening the remaining workforce. It's crucial that we find a balanced approach that doesn't sacrifice personal well-being for growth, as this is a responsibility we all share.
J?rn Fries
6 个月
All well said, now we just need to start the change… all problems are well known since years…however why did the change not start yet?
Galina Kersten
6 个月
Thank you for addressing the topic of rise of right parties so prominently, it is indeed the most concerning for Germany as location.
Volker Kappius
6 个月
Dear Christian Sewing nice prep talk to re-start the German Growth engine. Although our politicians and many NGOs and concerned citizen disagree, we need to admit that CO2 is the currency of local and worldwide prosperity. We cannot just stop paying with CO2 currency, we need to spend it wisely. And we need to understand that CO2 is a global currency with a global effect. If we cut it off here, it will still be spent elsewhere. Innovation and political efforts need to push for a wise and sustainable spending of CO2 emissions. On the European level a combination of the Green Deal and an Industrial Deal is needed. The German Industry has one of the highest return on CO2 Investments (ROCO2I). In order to get a similar productivity in other countries much more CO2 will have to be spent. Let us further increase the ROCO2I here in Germany and export those developments to the ROW.?
Leo Birnbaum
6 个月
Christian, thanks for calling it out. Our society needs to work more and longer. We need to increase our productivity. We need to aspire for growth and innovation rather than becoming acquainted to stagnation. Otherwise we will neither have the resources to master challenges like defending our freedom and fighting climate change nor will we be able to finance our social welfare system.
Jürgen Kr?mer
5 个月
Is working longer and harder really a reasonable approach in times of suffocating bureaucracy and artificial intelligence? Statistics show that incentives are not what makes people be more productive. It′s purpose and a smart and healthy work environment that ensures growth in the long run. Both personally and financially.
Marco Malpezzi
6 个月
Christian Sewing, thanks for bringing this to light. It's crucial that we prioritize innovation over maintaining the status quo. Boosting productivity and driving growth are essential if we want to tackle key challenges like safeguarding our freedoms, combating climate change, and sustaining our social welfare systems.
Entrepreneur, CEO and Co-Founder of MODIFI, Founder and former CEO of BillPay
6 个月100%! We at MODIFI have German roots but help small and medium sized businesses in high growth markets like India, UAE and China growing their business and going global. Completely different mindset, hard working and phenomenal can-do-attitude in these countries where the future is being built and people are proud of growing their economies and building their countries. We in Europe have a lot to (re)learn from them. Without growth the future in Germany will not be bright. Let’s get back to work and stop complaining!