April 15, 2016
by Marcel Fratzscher
0 comments

“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]

September 16, 2014
by Marcel Fratzscher
0 comments

The German locomotive has become Europe’s liability

This article was first published on ft.com 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]

July 4, 2014
by Marcel Fratzscher
0 comments

Europe Doesn’t Need More Public Spending

This article was first published in The Wall Street Journal Europe on 4 July 2014

Europe is stuck in a deep slump and facing the prospect of many more years of stagnation and high unemployment. European leaders are right in their diagnosis that a growth stimulus is urgently needed to end the crisis. But they are wrong in their solution: The Continent doesn’t need more public spending and bigger government. It needs more competition, innovation and the completion of the

[continue reading]

June 28, 2013
by Marcel Fratzscher
0 comments

Ailing Infrastructure: Scrimping Threatens Germany’s Future

SPIEGEL ONLINE International writes about the recent study by the German Institute for Economic Research (DIW) about the investment shortfall in Germany:

“From the outside, Germany appears to have a robust economy. But a new study by a leading economic institute reveals that the country is investing far too little in infrastructure and its future, effectively saving itself to death .. (full article)”

For more information on the investment agenda of DIW Berlin, see also my post “

[continue reading]

June 26, 2013
by Marcel Fratzscher
0 comments

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]