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submitted 18 hours ago by Pip@feddit.org to c/europe@feddit.org

The ZEW economic sentiment index for Germany surged to 26.3 in July, more than doubling from 10.5 in the previous month and significantly exceeding the market forecast of 17.5, according to data released by the Leibniz Centre for European Economic Research (ZEW).

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[-] geissi@feddit.org 1 points 4 hours ago

Germany has a lot of savings (no need to increase them) that are badly invested and lossmaking

That may be, but that is primarily a personal finance problem. The economic advantage of such pension funds is that it can provide dividends that can then be spent but that takes time. And these dividends must be created by some form of economic activity, which in international funds happens abroad, not domestically.
The money for investment that capital markets can provide only helps companies that want to grow. Companies only need to grow if they see or expect demand that they can not fulfill with their current capacities. That is for the most part not the case for the current German economy.
As I said before German companies have more capacity than demand. If demand does not pick up soon they will fire people they no longer need. The economy does not need more money in capital market right now, it needs more consumption.

voilà! https://hightech-agenda-deutschland.de/

Thanks for that but honestly, these are just fancy wish lists. Their detailed plan for fusion is:

  1. work out the necessary requirements for fusion
  2. create supply chains
  3. create the necessary requirements for fusion

more hours worked per employee at same activation rate

I must admit, I had to look up activation rate. It's not the most common metric in the manufaturing industry where all these endangered jobs are currently. But it seems to me that if workers are supposed to work more and the success metric does not change, then that means effectively less productivity. Surely, if anything, you'd want the opposite.

more disposable income, more household expenditure

Yes, both would be great. Now, where exactly are these supposed to come from? As mentioned, the pension reforms will reduce net income.

More public sector modernization (more construction works for schools, bridges, roads, cables, fleet, IT systems…), more demand.

Again, yes please, but where is it?
Before the government was voted in they quickly negotiated a reform to the debt limit and set up a special fund that was supposed to be used for "additional investment" only. During the last year they moved all already approved investment from the regular household to this fund so they had more room for non-investment spending.

[-] Pip@feddit.org 1 points 3 hours ago

It's not a personal finance problem. These investment decisions are not made by individuals mostly, but by funds and their regulators.

There are many growing markets where capacity does not meet future demand (future is really key here). Those markets are likely the 6 industries in the new German industrial policy. The plans are not wishlists since they were jointly compiled by firms, research orgs and governments.

About the domestic demand: well, both investment and additional investment in public sector works increase demand.

About household incomes, these increase when you earn more money by working more.

[-] geissi@feddit.org 1 points 1 hour ago

These investment decisions are not made by individuals mostly, but by funds

I thought you were talking about the structure of German savings using not enough stocks or funds.
What makes you think that a) existing funds are not investing correctly and b) that the new pension system would change that?

many growing markets where capacity does not meet future demand (future is really key here)

So, we have estimates that the car industry alone could lose 140k Jobs till 2035.
How many of these will be employed in these 6 cool future industries by then? The battery industry could lose 3000 Varta employees pretty soon.

additional investment in public sector works increase demand

Yes it can, and I just explained how the government has misallocated additional investment funds to already planned investments.
So where are these additional investments coming from?

household incomes, these increase when you earn more money by working more

a) That only hods true for people with hourly wages, not monthly salaries
b) For hourly jobs, that means that the labour costs remain unchanged. If companies actually needed more labour at the same cost, they could just hire more people. We have over 6% unemployment with massive announced job cuts for the next years.
c) I've already explained twice that there is currently not enough work to be done. Companies don't pay people to stand around and do nothing. Demand need to rise

this post was submitted on 24 Jul 2026
15 points (85.7% liked)

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