Mr DAX takes on Germany’s Green pest economic policy – Asia Times

Mr DAX takes on Germany's Green pest economic policy - Asia Times

Theodor Weimer, the CEO of the Deutsche Börse and frequently referred to as Mr. DAX, slammed German Economic Minister Robert Habeck’s plans in a burning manner. Speaking at a debate hosted by the Economic Advisory Council of Bavaria, Weimer, a considerable number in both European and international fund, did not hold up in his judgment.

Theodor Weimer, CEO of Deutsche Börse. Image: Finance Magazin

” We’re facing a large catastrophe”, Weimer declared, reflecting on his 18th conference with Vice- Chancellor and Economic Minister Robert Habeck, who is co- head of the Greens.

First, Weimer noted a sort of enthusiasm, observing that Habeck had shown great listening skills and made some proper decisions. But, that enthusiasm evaporated. ” The conservatives are exceedingly coming through”, Weimer said, indicating a shift in policy emphasis that he finds deeply troubling.

global view of Germany is waning

Weimer’s address was n’t just a tirade but an expression of genuine concern. He painted a grim portrait of Germany’s position in the world economic group by sharing perspectives from his extensive interactions with foreign investors. ” Our popularity has never been worse”, Weimer emphasized.

Investors, especially lengthy- word ones such as healthcare companies and pension funds, are bewildered by Germany’s current direction. They shook their heads and inquired,” Where have the German values gone?” We do n’t know how to read you anymore.'”

These buyers, according to Weimer, then process Germany with a sense of fatalism. ” If you continue this way, we will prevent you actually more”, they warn. What they perceive as irrational guidelines that have made Germany a” junk shop,” with investments motivated by unscrupulous goals rather than powerful fundamentals, is at the heart of their frustration. ” What you are doing is just insane”, they tell Weimer.

A federal lacking course

The skepticism is n’t limited to economic policy. Weimer reports that political watchers from places like Singapore are boldly questioning Germany’s government’s level of competence. ” They ask me,’ What kind of state do you have?'” Weimer said.

He elaborated on the perceived change towards a “big state” mentality, where the position feels compelled to overprotect. “Economically, we are on the path to becoming a developing state”, he warned.

Effects on key sectors

One important point of contention is Germany’s electrical business. Weimer criticizes the strict CO₂ laws that have, in his view, caught auto manufacturers. ” If I buy a BMW 7 Series, I just find a six- barrel cross in Germany, but in the USA, I get an eight- cylinder”, he pointed out, lamenting the stress to lower company cars as misplaced. ” We need big cars to drive growth”, he argued.

Germany needs ‘ big cars to drive growth.’ Interior of a BMW 7 series as advertised in the US, where 8- cylinder engines are permitted. Photo: BMW Atlantic City

Broader policy failures

Weimer’s critique extended beyond economic policies to Germany’s handling of migration and defense. He criticized the nation’s immigration policies as being fundamentally flawed and unrequited. According to him, effective migration should concentrate on attracting skilled workers who contribute to the economy rather than supporting those who may turn out to be long-term recipients of welfare.

Additionally, he highlighted Germany’s lag in defense and digitalization as critical areas of failure.

A call for change

Weimer ended his speech by invoking a need for radical change and an urgency. The times of glossing over Germany’s economic issues are over, he asserted, quoting the late Wolfgang Schäuble, a famous German politician ( CDU) who died last year:” Isch over” ( It’s over ).

Weimer’s speech serves as a stark wake- up call. It’s a revolt against what he perceives as a noxious green ideology that permeates Germany’s economic policies. As international observers watch closely, the question remains: Will Germany heed this call for change, or continue down its current path?

Diego Fassnacht, CFA, is an international economist and an investment advisor to individual clients and institutions. Prior to his work in finance, he served on the governing council ( Deutschlandrat ) of the youth organization ( JU) of the main German opposition party, the CDU.