Germany and Europe need productivity boost, study says

A study published by the Ludwig‑Erhard‑Stiftung warns that Germany’s and Europe’s economic and security frameworks are under strain from demographic ageing, weak investment and lagging technological progress. The analysis links these structural weaknesses to slower growth and reduced fiscal and defence capacity.

The report proposes a set of “lever reforms” that aim to raise productivity, broaden fiscal space and reinforce security policy. It stresses that higher labour‑force participation, qualified migration and increased R&D investment are essential, but the decisive factor is accelerating innovation and technology adoption to restore sustainable growth and long‑term security.

The authors argue that without such reforms Europe risks losing its strategic and economic influence in a fragmented global landscape.