The German government is looking to introduce the “Frühstart-Rente”, a new private pension scheme automatically enrolling all school-age children. The reform would mark a profound shift, aiming for an early start to capital market-based old-age provision.

Germany is debating an overhaul of the third pillar of retirement savings, aiming for effective low-cost solutions with higher returns. The reform is crucial as the public pay-as-you-go system faces mounting strain from demographic change, making supplementary private pension income vital. The planned new “old-age provision account” would move away from expensive mandatory guarantee products and allow up to 100% equity exposure. This could help to channel more retail savings into higher-yielding stock markets, which has the potential to become a true game-changer for German households’ financial well-being in their old age.

Germany is debating an overhaul of the third pillar of retirement savings, aiming for effective low-cost solutions with higher returns. The reform is crucial as the public pay-as-you-go system faces mounting strain from demographic change, making supplementary private pension income vital. The planned new “old-age provision account” would move away from expensive mandatory guarantee products and allow up to 100% equity exposure. This could help to channel more retail savings into higher-yielding stock markets, which has the potential to become a true game-changer for German households’ financial well-being in their old age.

In this report, we discuss "restricted markets," defined as emerging markets with current or capital account restrictions, or both. We examine their market structure and challenges of trading. Recent regulatory and technological changes offer new opportunities for market participants involved in these markets.

In this report, we discuss "restricted markets," defined as emerging markets with current or capital account restrictions, or both. We examine their market structure and challenges of trading. Recent regulatory and technological changes offer new opportunities for market participants involved in these markets.

The series of five regional elections has been kicked off. Favorable election outcomes might lead to a new reform push in the Merz government.

The series of five regional elections has been kicked off. Favorable election outcomes might lead to a new reform push in the Merz government.

The recently launched Deutschlandfonds is a flagship project of the government to mobilise private investment in targeted sectors. The government will provide around EUR 30 bn, mostly in the form of guarantees, with a goal of stimulating total investments of around EUR 130 bn. The fund brings together existing and new investment promotion programmes that cater to startups, manufacturing companies, and the utility sector. It is a welcome booster for private investment and will help to close existing financing gaps. Nevertheless, structural reforms remain key to reinvigorate investments across all industries.

Following the loosening of the debt brake this spring, the government has unveiled an ambitious spending agenda aimed at revitalizing aging infrastructure and bolstering national defense. Two critical questions emerge: can this plan be executed as rapidly as promised, and will it deliver lasting positive effects on Germany's growth potential? A preliminary reality check suggests that while fiscal expansion will be delayed in 2025, it is likely to gain traction from 2026. However, even then, the general government deficit, estimated at 3.5% of GDP, is unlikely to reach the higher levels predicted by the government. Moreover, while the fiscal stimulus is likely to provide a short-term "sugar rush”, its impact on potential growth might be limited. Despite the loosened debt brake, a substantial financing gap looms as early as 2027, potentially turning the 2027 federal budget negotiations into another test for government cohesion.

Following the loosening of the debt brake this spring, the government has unveiled an ambitious spending agenda aimed at revitalizing aging infrastructure and bolstering national defense. Two critical questions emerge: can this plan be executed as rapidly as promised, and will it deliver lasting positive effects on Germany's growth potential? A preliminary reality check suggests that while fiscal expansion will be delayed in 2025, it is likely to gain traction from 2026. However, even then, the general government deficit, estimated at 3.5% of GDP, is unlikely to reach the higher levels predicted by the government. Moreover, while the fiscal stimulus is likely to provide a short-term "sugar rush”, its impact on potential growth might be limited. Despite the loosened debt brake, a substantial financing gap looms as early as 2027, potentially turning the 2027 federal budget negotiations into another test for government cohesion.