Currency and Financial Markets Macroeconomics Monetary Policy

“In an International Comparison, Too Little Is Being Invested in German Industry”: Six Questions to Marcel Fratzscher

  1. Mr. Fratzscher, there are concerns about an overall lack of investment in Germany. Is the problem more urgent in the public sector or in the private sector?
    The investment gap exists in both the public and private sector. Three years ago, we calculated that Germany’s investment gap amounts to roughly 75 billion euros per year. The investment gap has also been confirmed by other studies. The problem is definitely more urgent in the private sector.
[continue reading] Read more
Business Cycles, Growth, Economic Structure Economic Policy Public Finances and Financial Economics

Expert Commission presents 10-point plan to increase investment, growth, and jobs


The Expert Commission appointed by Federal Minister of Economic Affairs Sigmar Gabriel proposes a 10-point plan to lay a new foundation for increasing investment, growth, and jobs in Germany. With this, both the existing investment opportunities in the public sector as well as the framework conditions for private investment should improve – including through an investment pact for municipalities, the formation of a public infrastructure institution, and a public infrastructure investment fund. In the creation of a plan to “strengthen … [continue reading]

Read more
Business Cycles, Growth, Economic Structure Public Finances and Financial Economics

“A force d’économies, notre patrimoine a perdu énormément de valeur”

This interview was first published in Les Echos on 15 September 2014.

Ancien économiste à la Banque centrale européenne, Marcel Fratzscher publie vendredi un nouveau livre «L’Illusion allemande», dans lequel il critique l’arrogance d’un pays qui se considère comme exemplaire mais dont l’économie présente aussi deréels handicaps.

Selon un rapport du Bundesrat, 20 % des autoroutes et 46 % des ponts routiers en Allemagne sont vétustes. Comment en est-on arrivé là ?

Jusqu’aux années 1980, l’Allemagne avait d’excellentes infrastructures et … [continue reading]

Read more
Business Cycles, Growth, Economic Structure Europe Foreign Trade and International Economic Relations Public Finances and Financial Economics

The German locomotive has become Europe’s liability

This article was first published on on 27 August 2014.

The news that German output declined in the second quarter has dented the country’s economic euphoria, but only a little.

Many blame the Ukraine crisis and transient factors such as the mild winter, and believe that Europe’s largest economy remains fundamentally strong. They are wrong. Germany’s disappointing performance mostly reflects structural weaknesses, both at home and in the eurozone. Policy makers should act quickly, before the problems become further … [continue reading]

Read more
Business Cycles, Growth, Economic Structure Economic Policy Public Finances and Financial Economics

10 Statements – Investment for More Growth. An Agenda for Germany’s Future

Germany has been swept away on a wave of euphoria – the public perception is that its economy is thriving and its future is promising. A study by DIW Berlin (document in German, a shorter English version of the study will be published in August) refutes this perception, arguing that, in recent years, Germany has not only made fundamental economic policy mistakes but has also failed to set a course for the future. Above all, this is reflected in a [continue reading]

Read more