Competitiveness

Inhalt

1. Competitiveness as the basis for prosperity and freedom

2. Comprehensive reforms are urgently needed

3. The key to economic success is innovation

4. Without the right framework conditions, everything is nothing

5. Global competitiveness requires a strategic foreign trade policy

6. Publications, events and media contributions on the topic

Competitiveness as the basis for prosperity and freedom

The competitiveness of the German and European economy forms the basis for prosperity and freedom. It is the guarantor for a Europe that is well listened to in the world and can pursue its goals such as security, human rights and climate protection. If European companies are leaders in certain sectors of the economy, they can set standards in line with European ideas. The areas of platform economy and artificial intelligence in particular show the pressure Europe can face to adapt if it is unable to take on this leading role.

Comprehensive reforms are urgently needed

The reports by Mario Draghi and Enrico Letta have put Europe's competitiveness back at the top of the agenda. In particular, completing the European Single Market with a genuine banking and capital markets union would lead to major efficiency gains. This could reduce the high outflow of capital – especially to the USA – and make more available for investment in the EU. More private capital is essential for the major challenges of strengthening Europe's defense capability and the transformation to climate neutrality. An increase in the already high levels of public debt in some European countries, on the other hand, would jeopardize Europe's debt sustainability.

The key to economic success is innovation

Successful economies are characterized above all by a thriving research and innovation landscape. Countries such as South Korea, Israel and the USA invest more in research and development in relation to their economic output, thereby securing their future competitiveness. China, too, has long since gone from being an imitator to an innovator. Here, the EU and Germany must make forward-looking decisions when prioritizing budgets and give companies further incentives to invest in research and development.

Without the right framework conditions, everything is nothing

The state is not the better entrepreneur. Its task is to create attractive framework conditions so that companies can develop freely and competitively. This includes a competitive tax system, moderate energy prices and well-trained professionals. In view of demographic change, an attractive immigration system for qualified immigrants is essential. This also includes balanced social security contributions so that the cost-benefit calculation of highly qualified immigrants turns out in favor of Germany and Europe. Germany and Europe have it in their own hands to strengthen their competitiveness.

Global competitiveness requires a strategic foreign trade policy

Germany and Europe are more dependent on open trade and close global economic partnerships than almost any other economic area in the world. However, in many regions of the world, Europeans are losing their attractiveness as economic partners and thus their competitiveness. Economic powers such as China, Japan and the Gulf States are offering themselves as new, attractive partners to emerging economies worldwide. For many of these countries, Europe is now just one partner among many and is at risk of losing ground in economic competition in many regions. In order to remain globally competitive, Germany and Europe need a strategic foreign trade policy that promotes international economic partnerships.

The Konrad-Adenauer-Stiftung supports the topic of competitiveness with a large number of publications and events in Germany and abroad.