Tegerensee, Germany – The best German business leaders, economists and politicians went down to a small picturesque Bavarian town located next to Tegernsee Lake emblematic last week to share their hopes and discuss what is at stake for the new government.
Recently supported Positive market feeling For the greatest economy in Europe, the participants of the summit were united in their call to the new administration to intensify and honor the promises of the campaign. Any misstep would probably not be tolerated, some business leaders warning that the government cannot afford a “lazy summer”.
Despite the rain and the hanging clouds offering a somewhat dreary backdrop to the event, which was nicknamed the “Davos of Germany”, the promise of new beginnings wrapped the summit and the atmosphere burst in excitation for the potential changes that the newly named chancellor, Friedrich Merz, could inaugurate.
The view through the teernsee of the summit of Ludwig Erhard
Sophie Kiderlin, CNBC
Large expectations for the government were commonplace, with concerns concerning the economy in difficulty of Germany and the recent political disorders which apparently disappeared in the background.
The German Dax index has currently been up more than 18% since the start of this year, frequently reaching record heights in recent months. The German economy has however been in territory of stagnation for more than two years now, with tensions on economic, budgetary and budgetary policy in the previous coalition in power and its possible bursting Continue to weigh on expectations.
“There are now very great hopes on the new government,” said Patrick Trutwein, head of risk and chief of the IKB Deutsche Industriebank Ag, during a panel led by Annette Weisbach of CNBC.
He said that he felt positive about the future of Germany given the announcement of the main fiscal ensemble inscribed in the German Constitution, as well as other potential upcoming reforms and “a fairly robust economy and can rely on itself … Productivity and skills”.
Matthias Voelkel, CEO of Boerse Stuttgart Group, was among those who feel full of hope.
“If we look to the future and if they (the new government) do the right thing, I am optimistic,” he told CNBC.
The CEO of Audi, Gernot Döllner, was waiting in a conversation by the fire which he hoped that the new government “would send an impulse in the German economy”.
The atmosphere was also optimistic in the German automotive sector, which has long struggled with competition from China, transition pressure to electric vehicles and were recently affected by American prices.
“The Germans are back,” said Hildegard Müller, president of the German Automobile Industry Association on Friday. “We are competitive,” she added.
A conference at the top of Ludwig Erhard.
Sophie Kiderlin, CNBC
But in the middle of the positive buzz, it was clear that the observers had a careful eye on governments at each movement.
“This new government in Germany cannot afford a lazy political summer, I am sorry, they must work and they have to work hard,” said Karl-theodor Zu Guttenberg, president of Spitzberg Partners and former German politician.
Or like Veronika Grimm, member of the German Board of Economic Experts, told CNBC: “Many are in the lead for the government.”
The Suralle message was clear: Germany must come together.
Alexander Horn, managing director of Eli LillyThe arm of Germany – Lilly Germany – said that the company strongly welcomes the objectives of the new government, but will not tolerate any warning.
“More specifically, we expect the declarations of intention which appear in the coalition agreement be implemented quickly, the speed plays an extremely important role,” he said in a panel, according to a translation of CNBC.
The Voelkel of the Boerse Stuttgart group indicated that its optimism is based on government action, claiming that it was looking for movements to “less bureaucracy, less anti-crissy regulations, more innovation and particularly strengthen investments”.
The newly created German government has set a good number of these points as political objectives, making promises to stimulate the country’s economy, reduce bureaucracy and stimulate innovation and investment during the electoral campaign and in its coalition agreement.
“This country needs an economic turnaround. After two years of recessions, the previous government had to announce (a) a year of zero growth for 2025 and we must really work there,” Minister of the German economy Katherina Reiche CNBC said at the top of the summit.