Tegernsee, Germany – The main German business leaders, economists and politicians descended to a small and picturesque Bavarian city located on the next next to the iconic Lake Tegernsee last week to share what is at stake for the new government.
Encouraged by the recent positive feeling of the market for the largest economy in Europe, the summit attendees joined in their call to intensify and honor the promises of the campaign. It is likely that any false step is not tolerated, and some business leaders warn that the government cannot afford a “lazy summer.”
Despite the rain and the low collation clouds that provide a sad backdrop of Sowhat for the event, which has been called “Davos of Germany”, the promise of new beginnings wrapped the summit and the atmosphere was buzzing for the possible changes in the newly marked changes.
The view through the Tegernsee from the summit of Ludwig Erhard
Sophie Kiderlin, CNBC
The great expectations for the government were common, with concerns about the economy in the difficulties of Germany and the recent political agitation that apparently vanished in the background.
The German Dax index has currently increased approximately 18% since the beginning of this year, reaching records frequently in recent months. The German economy has been in stagnation territory for approximately two years, with tensions about economic, fiscal and budgetary policy in the previous ruling coalition and its breakup to weigh expectations.
“Now there are very great hopes in the new government,” said Patrick Trutwein, risk director and director of Operations of the IKB Deutsche Industriebank AG, a moderate duration by Annette Weisbach of CNBC.
He said that he felt positive about Germany’s future taking into account the announcement of the main fiscal package enshrined in the Constitution of Germany, as well as new potential reforms ahead and “an economy that is quite robust and can build … productivity.”
Matthias Feelkel, CEO or Borse Stuttgart Group, was one of those who felt hopeful.
“If we look forward and if they [the new government] Do the right thing, I’m optimistic, “he told CNBC.
Meanwhile, the Audi CEO, Gernot Döllner, said in a talk by the fire that he had the hope that the new government “would send an impulse to the German economy.”
The mood was also optimistic in the automobile sector of Germany, which has a long leg that fights with China’s competition, the pressures of the transition to electric vehicles and has recently attacked US rates.
“The Germans are back,” said Hildegard Müller, president of the German Association of the Automotive Industry, Weisbach on CNBC Friday. “We are competitive,” he added.
A talk at the summit of Ludwig Erhard.
Sophie Kiderlin, CNBC
But in the middle of the positive buzz, it was clear that the observers closely monitor governments in each movement.
“This new government in Germany cannot afford a lazy political summer, sorry, they have to work and have to work hard,” said Karl-Theodor Zu Guttenberg, president or partners of Spitzberg and former politician of Germany.
Or as Veronika Grimm, a member of the German Council of Economic Experts, told CNBC: “A lot is ahead of the government.”
Everywhere the message was clear: Germany needs to act together.
Alexander Horn, general manager or Eli LillyGermany’s arm, Lilly Germany, said the business welcomes the objectives of the new government, but won any warning.
“Specifically, we hope that the statements of intention that are in the coalition agreement will be rapidly implemented, the speed plays an important role,” Dering a panel said, according to a CNBC translation.
Sentkel de Borse Stuttgart Group indicated that his optimism was based on the action of the government, saying that he was looking for movements towards “less bureaucracy, less regulation against growth, more innovation and strengthening the investment participularly.”
The newly coined German government has established many of these points as policy objectives, which makes promises to boost the country’s economy, reduce the agency and boost the innovation and investment of the electoral campaign and in its coalition agreement.
“This country needs an economic change. After two years of recessions, the previous government had to announce again [a] Year of zero growth by 2025 and we really have to work on this, “said German Minister of Economy Katherina Reiche to CNBC out of the summit.
