Business · Economy · 4 hrs ago

Economist urges Germany to move faster on reform and AI

Economist urges Germany to move faster on reform and AI

Economist Moritz Schularick is urging Germany to become more willing to change as it faces economic and structural problems.

He says the country has relied too long on past success and now has an inefficient public sector and a technology gap.

He argues Germany must invest more decisively in AI, including to help its machinery industry compete.

Schularick also wants less regulation and changes to job protections, including in the civil service, so employers can adapt and use AI.

He points to Denmark’s “flexicurity” model, which pairs greater flexibility at work with generous support for people who lose their jobs.

He says Germany’s focus on older people, including through pensions, comes at the expense of young people and investment in education.

The government has promised reforms and is counting on growth, but Schularick says technological progress is also needed to protect wages and living standards.

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What people are saying

Moritz SchularickEconomist at the Kiel Institute for the World Economy
If you want to save German mechanical engineering, you have to invest in AI.
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We are the best in the technologies of the last century, but not the best in the technologies of this century.
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We live in a country that massively redistributes from young to old, for example through the pension system and a lack of investment in education.
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