Germany's economy has been struggling with weak growth for years. In the economic policy debate, this is mainly attributed to high costs, a lack of innovation and structural problems that have built up over many years.
Many economists believe most of the reform effort needs to happen at home. Clemens Fuest, president of the Ifo Institute, has called on the federal government, as he explained in an interview with Capital , to implement far-reaching changes in order to stimulate investment, foster innovation and generate fresh growth momentum. What is needed, Fuest argues, is 'a comprehensive approach to creating stronger long-term growth in Germany'.
