Politics

Germany’s economic road ahead

If German policymakers are to make the most of the opportunity, they will have to act neither rashly nor reticently

Angela Merkel is seen during election night event at the CDU's party headquarters
Angela Merkel is seen during election night event at the CDU's party headquarters Photo: Getty Images

The next German government will face economic-policy challenges in five key areas: digitalisation and automation, demographic change, globalisation, climate change, and European integration.

With respect to digitalisation, Germany tends to fluctuate between excessive enthusiasm for expanding fiber-optic networks and fear of the impact of new, largely unregulated business models, such as those underpinning avatars of the “sharing economy” like Uber and Airbnb.

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