Germany is entering the beginning of a new legislative period with a strong economic position. Current figures and forecasts for the near future are, across the board, positive. But both the private sector and society are confronted with major challenges – globalization, digitalization and demographic shifts are transforming the demands on our economy.
In addition, growing income and participatory gaps between individuals and regions demand that we rethink the underpinnings of social cohesion and prosperity. A new push for growth offers a solution to these issues. Indeed, growth that provides everyone an opportunity to benefit must be made a priority. In Germany, this requires policymakers to align economic and social policies as part of an Agenda for Inclusive Growth that can renew the promise of the social market economy and ensure prosperity for all.
In concrete terms, such an agenda can be broken down into five action areas: investment in people and future-oriented fields, targeted reform of the tax-and-transfer system, a new wealth policy, diversity in entrepreneurial culture and new directions in innovation policy.