Even the World Economic Forum in Davos is set to discuss the crises this year. Top economists say action is needed in Germany.
Berlin – it is World Economic Forum in Davos, Switzerland It has started. More people than ever are expected to visit Davos, with 2,800 attendees expected. Expectations are set in advance: the war in Ukraine or the war between Israel and Hamas will be at the forefront, but such political solutions are not expected. Daily news assessed. It is about establishing trust to ensure “minimum cooperation”. Nevertheless, the forum is becoming more political than it has been in a long time, and while the guest list may be missing the names of leading actors such as Vladimir Putin, many eyes are on the participating politicians.
At Davos last year, Chancellor Olaf Scholes (SPD) focused primarily on climate neutrality. Germany wants to become climate neutral by 2045, he said, while remaining a strong industrial nation Scholz in his speech in 2023And added: “If you want a sustainable and profitable investment in the future, Germany and Europe are the right place.”
PWC study confirms declining confidence among foreign CEOs in Germany
The study of management consulting does not fit into this picture PWC, which surveyed 4,700 CEOs from 105 countries. Accordingly, one year later, the confidence of businessmen from other countries in Germany as a business location is decreasing. Only 15 percent of CEOs of foreign companies feel that Germany is important to their own company's growth in the next twelve months, compared to 18 percent last year.
It was announced on Monday (January 15) that economic growth in Germany fell by 0.3 percent. This means Germany is in recession.
Austria's Top Economist: “Can't See Any Leadership Strengths in Olaf Scholes”
It is also where the eyes of the economy turn to politics. In an interview Business week Austria's top economist Gabriel Felbermeir said Germany was not the “sick man of Europe” but was already suffering from a “cold”. That could have an impact, says the director of the Austrian Institute for Economic Research (WIFO): At 30 percent, Germany has the largest share of value creation in the euro zone. “If more support measures expire or are canceled in Germany due to austerity restrictions, this will push up the prices of some goods,” he says, which could result in inflation.
Such stimulus from Germany could lead to the abandonment of urgently desired interest rate cuts across Europe. However, he currently sees no “miracle cure” for the problem in German politics. And he directly accuses Scholz of showing no “leadership.”
“With respect, I don't see any leadership in Olaf Scholes that is needed in a crisis like this,” says Felpermayer. “The coalition is in disarray now, but please, that's not the stimulus Germany needs in the long term. “The trend is to slow growth in the next 10 to 15 years,” says Felbmayr, and goes as far as to call for a change of government in Germany from outside Austria. “Recipes are needed now, They will convince investors that they will risk their money in Germany.” He saw nothing.
Scholes did not go to the World Economic Forum in Davos, but Baerbach, Habeck and Lindner did
Now Scholes has set his sights on 2024 – perhaps once again – to show more leadership. As he promised at the SPD party conference in December. And the pressure on him is mounting: international analysts are also warning him to assume a leadership role. He won't prove it at Davos: Instead of Scholes, the Federal Foreign Minister Annalena Baerbach (Greens), Federal Economy Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FTP) are coming this year.
Meanwhile, the World Economic Forum will have completely different issues, not all of which will necessarily be resolved with the German leadership: Switzerland wants to hold a peace conference for Ukraine, it became known after a preliminary meeting. on Monday. For the most part, the Economic Forum is becoming a critical policy forum that must grapple with growing inequality, disrupted supply chains, the rise of artificial intelligence and collapsing alliances in some parts of the world.
However, the German economy can still resist bad assessments: in the PWC survey, 67 percent of German CEOs believe that economic growth will pick up again, and Germany is – despite all the low levels of approval – the third most important growth market in the world, after the US and China. (cat)
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