Bundesbank President Advocates Later Retirement for Economic Growth

Bundesbank President Joachim Nagel has called for raising the retirement age as a strategy to tackle the shortage of skilled workers in Germany. He suggests tying the retirement age to increasing life expectancy, moving away from incentives for early retirement. Nagel identifies several structural issues behind the current economic weakness, including high energy prices and the costly transition to a carbon-neutral economy. These challenges are further exacerbated by demographic changes and global economic isolation.

To improve Germany's economic conditions, Nagel proposes reducing bureaucracy and enhancing planning security in energy policies. He also emphasizes the need for better childcare options and making Germany more attractive to foreign skilled workers. Additionally, he calls for accelerated approval processes and more comprehensive integration of capital markets within the EU. By addressing these issues, Nagel believes Germany can strengthen its economic growth and improve its competitive position globally.