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.