The AfD and BSW have seen a huge increase in support in the state elections in the East. The Deutsche Bank CEO sees the election results as a threat to the bank’s reputation among investors – and a wake-up call.
Deutsche Bank CEO Christian Sewing warns of the consequences for Germany as a business location following the state elections in Saxony and Thuringia. “We should urgently discuss what the election result and its causes mean for our business location and its reputation among investors,” said Sewing at the “Handelsblatt” banking summit in Frankfurt. The influx of parties with extreme positions is a “wake-up call to finally take countermeasures,” said Sewing, without naming any parties.
Investors concerned about political stability
“We have to show people that the solution to their problems lies in the middle of society and not on its fringes.” This includes ensuring that Germany remains permanently competitive and does not fall behind.
The rest of the world has been looking at Germany with increasing skepticism for some time, Sewing continued. “Investors doubt our ability to reform, but also our ability and our will to perform.” Added to this is concern about political stability. A strong, reliable democracy has always been an argument in Germany’s favor, but now this is being called into question.
“Must be willing to work harder and longer”
The answer to the uncertainty among voters and investors is growth, said Sewing. He called for fundamental reforms, but also for more willingness to perform. “For me, it is crucial that we agree again that growth is something positive, indeed a necessity.” Germany needs a multiple of the potential growth of 0.4 percent, as the Council of Economic Experts sees it for the German economy.
“But that will only work if we change our attitude to work; if we are prepared to work more and harder,” Sewing demanded. To achieve this, more incentives are needed that reward work and performance. The number of working hours per week and per lifetime must also increase. “We won’t manage it with an average of 28 hours per week and retirement at 63.”
Source: Stern
