- Warning Issued on Potential Consequences following State Electoral Vote in Sewing Area
Deutsche Bank's boss, Christian Sewing, sounds the alarm following the state elections in Saxony and Thuringia, warning that these results could impact Germany as a worthy investment option. "It's essential we dissect what these election outcomes and their underlying causes imply for our location and its investment standing," Sewing mentioned at the Handelsblatt banking summit in Frankfurt. The rise in support for parties with radical ideologies serves as a "wake-up call to finally institute countermeasures," Sewing stated, refraining from mentioning any specific parties.
Investors' Fears about Political Sympathy
"We need to demonstrate to people that the solution to their predicaments isn't found at the extreme ends, but in the societal heart." In order to accomplish this, Germany must remain competitive and avoid lagging behind.
The global community has begun to scrutinize Germany with growing trepidation, according to Sewing. "Investors are questioning our capacity to reform and our commitment and eagerness to deliver." Now, there are also concerns regarding political dependability. A robust, dependable democracy has always bolstered Germany, but that is now being challenged.
"Prepared to Put in More Hours and Effort"
The solution to the uncertainty among voters and investors, as per Sewing, is growth. He advocated for fundamental changes and increased determination to deliver. "For me, it's imperative we revive our consensus that growth is a good thing, indeed, a necessity." Germany needs to surpass the potential growth of 0.4%, as suggested by the Council of Experts for the German Economy.
"This can only be accomplished if we also transform our stance towards work; if we're ready to work harder and longer," Sewing insisted. More incentives are needed to incentivize work and performance. The weekly and lifetime working hours also need to expand. "With an average of 28 hours per week and retirement at 63, we won't cut it."
The global investors' concerns about Germany's political stability might negatively impact investment opportunities in Germany, as mentioned by Deutsche Bank's boss, Christian Sewing. In light of the rising support for radical parties in recent state elections, Germany needs to reinforce its commitment to maintaining a robust and dependable democratic system to regain investor confidence.
