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For Germany, all hangs on innovation

Sunday’s election gave a boost to parties seeking to end a long recession by unleashing the economy for digitization and other reforms.

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Reuters
Christian Democratic Union party leader Friedrich Merz, Germany's likely next leader
  • By the Monitor's Editorial Board

Voters in Germany’s election on Sunday were very excited to cast ballots. Turnout was an astounding 83.5%, the highest in more than three decades. A big reason was that Europe’s largest economy has experienced its longest stagnation since World War II. Germans are eager for the same innovative spirit that revived their country from the ashes of that war.

“There is really a sense of urgency at the moment because we are on the third year of a recession with no end in sight,” David Deißner, managing director of the Foundation for Family Businesses, told the BBC. “Germany really needs ... a fresh signal for growth and unleashing growth and innovation.”

The country’s business model of manufacturing exports is “gone,” Friedrich Merz, leader of the winning party, the Christian Democratic Union, told The Economist in February.  Germany has been a laggard in new patents – caused by what experts call “technophobia” – and misjudged the rise of China’s economy, especially its progress in electric vehicles.

Now seen as Germany’s next chancellor, Mr. Merz plans to form a coalition government by April 20 and then quickly cut red tape for businesses and push Germans to finally embrace the digital age. He plans to create a ministry for digitization, a function currently embedded in the Transport Ministry. His party promises “real breakthroughs” in artificial intelligence.

A revived economy is vital for Germany to help Europe pay for Ukraine’s defenses, achieve climate goals, and fend off rising calls on the right to end immigration. “Only an innovative Europe will bring us forward again,” says Adrian Willig, director of the Association of German Engineers.

During the election, many issues came up. But the desire to revive the economy through innovation was a constant theme. As the de facto leader of the European Union, Germany may be finding its footing again. A high voter turnout showed that Germans are not giving up.

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