Creaking Infrastructure

Without Investment, No Welcome for Refugees

Refugees receive training at Cucula, a non-profit initiative. DPA
Refugees receive training at Cucula, a non-profit initiative. DPA
  • Why it matters

    Why it matters

    Germany won’t be able to tackle the refugee crisis unless the state finally starts investing in education and infrastructure.

  • Facts


    • In 2014 the German government’s pension reforms lowered the retirement age from 65 to 63 for some people.
    • This reversed a move by the previous Merkel-led grand coalition with the SPD to gradually raise the retirement age to 67 between 2012 and 2029.
    • Many economists are concerned about the burden the swollen baby boomer generation will place on the economy as it retires.
  • Audio


  • Pdf

All debate about the future of German economic policy is currently under the spell of the refugee crisis.

It’s understandable that the small number of decisions being made right now are focused on short-term goals. But nobody should forget that Germany must succeed in its response to the crisis if it wants to guarantee the performance of its economy long-term.

The time has come to close Germany’s ever-growing investment gap. Only then can we ensure that job-seeking migrants, German natives and future generations have intact infrastructure and productive jobs.

Just over a decade ago, important changes were made to the German labor market. But back then politicians gave little thought to what was already an extremely low level of public and private investment.

This led to a dwindling of investment that endangers Germany’s suitability as a prime location for business. It isn’t the companies’ fault.

Politics has provided no regulatory framework to promote long-term competitiveness. The state has not invested enough in education or in creating a modern, high-performance infrastructure.

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.