Economic Challenges: Standort Deutschland: Wie berechtigt ist der Pessimismus?

In this episode of Economic Challenges, Handelsblatt Chief Economist Bert Rürup and Michael Hüther, Director of the German Institute of Economic Affairs, examine the viability of Germany's future. Rürup identifies four structural strains: demographic change, the strained export model, lagging key technologies such as Artificial Intelligence (AI), and declining German automotive industry supremacy.

"The future meets all the criteria to be worse than the past," asserts Rürup. Hüther calls for nuance. Germany does not lag in traditional industrial sectors, the shortfall lies in the digital economy. Hüther identifies three drivers of job losses: economic slowdown, structural change due to climate and AI transformation, and the reduction of "Labor Hoarding," keeping workers employed irrespective of workload.

In contrast to the US, Hüther argues that German companies invested 65 percent less in the first half of 2026 compared to the previous year - no comparison to an investment siphon into the US. However, he cautions against US Treasury Secretary Scott Bessent's fiscal policy, which puts pressure on the Federal Reserve's independence.

Ultimately, Rürup's pessimism remains, while Hüther relies on leading indicators and cyclical robustness. Who will prevail is undecided and will be clarified in the next episode. Moderated by Bert Rürup and Michael Hüther, produced by Lukas Teppler. Exclusive subscription offer for all listeners of Handelsblatt Economic Challenges: https://www.handelsblatt.com/global. More information on advertising insertions.