“There is increasing public support for fundamental reform.”

Thomas de Maizière, former Head of the Federal Chancellery and Federal Minister of Defence, outlined the fundamental transformation Germany needs in his speech at Investment Fokus. He made the case that changing global power structures pose considerable challenges for Germany, and that those fundamentals that once seemed certain – such as the absence of war, steady economic growth, no signs of deficiency and a well-functioning state – are now looking shaky. This is illustrated, he says, by the fact that 70% of the population consider the state to be overstretched. The coronavirus pandemic further reinforced this perception as even basic essentials such as children’s cough syrup became scarce, a scenario that was previously unthinkable in Germany’s affluent society.

De Maizière emphasised the growing significance of foreign and security policy, where Germany’s traditionally pacifist approach is at odds with current security policy requirements. This tension is particularly apparent in previous debates such as “Bomben statt Bildung” (“Bombs not books”) or today, when the Chancellor stresses that the welfare state and security do not need to be played off against each other.

De Maizière sees significant financial challenges ahead, with an additional EUR 30 billion of financing needed for the German armed forces alone after the exhaustion of the special defence fund. According to De Maizière, the state will no longer be able to cover all of life’s big risks. He believes tax cuts are unrealistic, and the idea that this will automatically lead to more growth is an old wives’ tale. What’s more, he believes the big question facing Germany in this era of epochal change is: “Who is willing to defend our country?”

De Maizière also believes that comprehensive government reform is inevitable, particularly in the areas of digitalisation, federalism and crisis management, and made the case for a national security council and improved protection against natural disasters. According to De Maizière, the population needs to learn to live with greater uncertainty – whether that means Trump, China/Taiwan or climate change – and pondered whether the supposed certainties of the past few decades could in fact represent an exceptional period in history. Yet there is one positive in all this: “There is increasing public support for fundamental reform given the obvious inadequacies in the state’s ability to take meaningful action.”