1、09 January 202504Then and now what a difference a quarter of a century makesAllianz ResearchGermany 07Ten priority areas to restart Germanys growth enginequo vadis?Allianz ResearchOver the past 25 years,megatrends such as demographics,climate change,and artificial intelligence(AI)advancements have r

2、eshaped global economies.Poised at the crossroads of these transformations,Germany faces challenges distinct from its earlier struggles as the“sick man of Europe”,raising doubts about its economic model.To navigate these complexities,Germany requires a“2030 Leitbild”a strategic vision that strengthe

3、ns growth foundations and charts a path to future prosperity.Ten priority areas emerge as crucial to restarting Germanys growth engine:1 Liberation from fiscal self-restraint:Germanys federal budget shortfall,driven by rising defense and investment costs,demands a comprehensive strategy.Public inves

4、tments in decarbonization,transport,education and defense require reforms such as a dynamic debt brake and golden rule plus“based on investments.Raising the structural deficit ceiling to 0.5-1%of GDP could support critical investments,but structural reforms remain essential.2 Transition to a green e

5、nergy system to secure competitiveness:Short-sightedness has delayed Germanys energy transition,leading to higher costs,slower decarbonization,and infrastructure development that lags the growth of renewable energy.Achieving long-term sustainability requires EUR1tr in investments by 2035,equally div

6、ided between upgrading energy infrastructure and expanding renewable capacity.3 Rebuilding public infrastructure after years of neglect:German public investments have plummeted from 1%of GDP in the 1990s to zero.Rebuilding capital stock will require an additional EUR600bn over the next decade.Critic