DSGV calls for reliable framework conditions for investments

At the Annual Meetings of the World Bank Group and the International Monetary Fund, Ulrich Reuter, President of the German Savings Banks Association (DSGV), called for urgent action to improve German and European competitiveness. “We must not content ourselves with a creeping downward trend. Germany and Europe must make it back to the top,” said Reuter in Washington.

Reuter drew attention to the sobering results of recent competitive rankings, in which Germany is falling behind significantly. In the World Competitiveness Ranking, for instance, Germany had been relegated to 24th position. In addition, Germany’s economy was stagnating, while other industrialised nations were already exhibiting growth dynamics again. Reuter: “We are living off the prosperity which we built up in the past. This will have to change.”

The DSGV President called for a change in political thinking and reliable framework conditions which would encourage private investors and businesses to invest in the necessary infrastructure and innovations. “The era of whitewashing reality is over. Billions in investments will be needed every year to make the European economy future-proof. These funds cannot be provided by public budgets alone – private investors are also needed.”

In this context, the financial sector – in particular Savings Banks – will play a key role. With a market share of around 40 percent of corporate finance, the Savings Banks Finance Group is ready to make a major contribution to financing these investments in the future. “We are a strong foundation for the economic future of our country,” said Reuter.

To attract international and private investors for Europe, Reuter called for fewer regulatory interventions and more planning reliability. In particular small and medium-sized enterprises – the backbone of Germany’s economy – needed reliable framework conditions to make investments in the future from their own resources. He emphasised the significance of a well thought-through immigration policy and a better digital infrastructure.