ifo Annual Meeting 2023

The Green, Digital and Social Transformation – Where Does Germany Stand after Covid and The
War in Ukraine?

The digital transformation, demographic change, and the ecological restructuring of the economy – these were important tasks that the traffic light coalition wanted to tackle in order to make Germany fit for the future. But just a few months after the new government took office, the war in Ukraine put new topics on its agenda. This has not reduced the urgency to initiate reforms. But it has narrowed the financial scope for them. Various relief packages and the special fund for the Bundeswehr are reducing the leeway in the federal budget. The transformation of the economy is bringing about lasting changes to productivity, employment, and competitiveness. At the same time, social groups are affected very differently by the costs of transformation - a major challenge for the social market economy. How can politics and business shape this transformation responsibly for society?