On March 10, 2025, the Berlin School of Economics, in collaboration with the School of Business and Economics at Humboldt-Universität zu Berlin, had the privilege of hosting Dr. Joachim Nagel, President of the Deutsche Bundesbank, for a speech and a discussion on economic policy measures to boost growth in Germany. In a time of mounting economic challenges, this event served as a crucial forum for addressing pressing concerns surrounding Germany’s economic trajectory and its place in a rapidly shifting global landscape.
Germany’s economic outlook has been a central topic in political and academic discourse, particularly as the country faces slow growth, demographic challenges, and the transition to a green economy. Dr. Nagel’s speech came at a critical time: Germany’s potential growth rate has declined to just 0.4% annually, significantly lower than in previous decades and trailing behind the EU average. He emphasized that while public debt debates are important, they alone will not resolve the deeper structural issues that Germany faces. Instead, a bold and comprehensive approach is needed, focusing on three key areas: labor market reforms, energy policy, and business innovation.
Dr. Nagel framed his speech around a well-known quote from Karl Marx, displayed in the foyer of Humboldt-Universität: "The philosophers have only interpreted the world in various ways; the point, however, is to change it." While Marx may not have had the specific solutions for Germany’s current economic challenges, Dr. Nagel used this quote to highlight a crucial point—economic challenges have been analyzed extensively, and now is the time for action. His 12-point plan is not just theory but a practical roadmap for Germany to regain economic momentum.
Dr. Nagel laid out a 12-point program aimed at restoring growth and prosperity in Germany. He made it clear that these recommendations were particularly relevant for the incoming government, urging leaders to take decisive action beyond simply adjusting debt limits. His proposed measures spanned three major themes:
I - Labor Market Reforms: Expanding Workforce Participation
II - Energy Policy: A Stable and Efficient Transition
III - Business Innovation: Making Regulations Simpler and Encouraging Investment
Dr. Nagel’s speech was not just an academic exercise; it was a direct call for policymakers to take decisive action. Germany stands at a crossroads—either it embraces proactive reforms that address the root causes of its economic stagnation, or it risks falling further behind in global competitiveness. His remarks highlighted the delicate balance between responsible fiscal policy and the necessity of strategic investments in infrastructure, technology, and workforce development. The broader takeaway from his speech was clear: Germany must act now, or it will face even greater difficulties in the years ahead.
This event was made possible through the joint efforts of the Berlin School of Economics and the School of Business and Economics at Humboldt-Universität zu Berlin. We extend our sincere gratitude to Dr. Joachim Nagel for his invaluable insights, as well as to Prof. Dr. Daniel Klapper for his opening remarks and Prof. Dr. Alexander Kriwoluzky for moderating the discussion. A special thanks also goes to the students, researchers, and professionals who participated, as well as to the external guests and political representatives who contributed valuable perspectives. We also appreciate the press representatives for covering this important event.
As the conversation on Germany’s economic future continues, the Berlin School of Economics remains committed to fostering dialogue between policymakers and researchers. We look forward to future discussions and collaborations that will help Germany navigate its economic transformation and emerge stronger on the global stage.
