Interview: Blackrock-Chef Larry Fink: „Deutschland investiert nicht genug in KI“

Larry Fink, head of BlackRock, will be attending the government officials' investment summit in Berlin, where he will discuss BlackRock's role in Germany. The country has a relatively high debt-to-GDP ratio of around 64%, offering more room for maneuver than many other nations. However, investors like BlackRock want to see more tangible actions from the government, especially in infrastructure.

Fink believes that Germany needs more growth, which can only be achieved by unlocking private capital. While he still has faith in Germany's ability to attract international investors, he acknowledges that the country's political parties block each other and that reforms move slowly. Despite the political gridlock, BlackRock has continued to invest in Germany for decades due to the country's promising prospects.

Over the past 25 years, investors who remained committed to the stock markets have reaped attractive returns, even during crises like Brexit or changing US presidential administrations. Fink argues that Germany still has significant strengths and that investing in the country's long-term strength is a wise decision. The key question, according to Fink, is whether investors believe in their country and its ability to withstand global economic changes.

He believes Germany must utilize its fiscal policy leeway to modernize and renew the nation. While there are threats to the German economy, such as China's export dominance in the automotive industry, these risks can be managed. Fink suggests that the most important reform would be to streamline approval processes to accelerate investments.

He points out that while many countries have reduced the time needed for approvals, Germany still takes five to eight years, which is unnecessarily lengthy. A reform in this area would demonstrate to investors that Germany is making the country more attractive for investment. BlackRock has been investing hundreds of billions of dollars in Germany and will continue to do so as long as there are attractive opportunities.

Although the company has invested in the second Growth Fund of KfW, Fink sees room for optimization. Germany boasts excellent publicly traded companies and a secure bond market, but fewer private market investment opportunities compared to the US, where billions of dollars will flow into private equity and private credit markets in the coming years, potentially driving three percent annual growth rates.

Fink identifies several growth hindrances in Germany, including a negative mood in the country despite a relatively low unemployment rate, and a youth unemployment rate of 7.4 percent, which should be lowered to match the national average. To address this, BlackRock is launching the "BlackRock Future Builders" program, investing 15 million euros over five years to collaborate with local organizations and tackle the skilled labor shortage while bringing more young people into skilled trades.

This program has shown promising results in the US, and BlackRock hopes to replicate its success in Germany.