According to economist Ulrike Malmendier, the Middle‑East conflict threatens to wipe out Germany’s already modest growth forecasts. She told RTL/ntv that the projections have never expected large jumps-steadily hovering around one percent. “If we lose a bit more, we’re quickly back at zero” she warned. Rising fuel prices and tightening supply chains have amplified these risks. Whether the damage will become long‑term depends on geopolitical developments and how both the government and industry respond. She calls for a stronger EU internal market and a coordinated energy‑supply strategy.
Malmendier has also criticized persistent protectionism within the EU. The economic community, she argues, failed to create a seamless market for 450 million consumers free of tariffs or trade disputes. “That has unfortunately slipped through the cracks” she said, further targeting the national capitals that seek to shield their own industries.
She praised the new EU company form that can be established in 48 hours as a promising idea, but said it ultimately falls short, saying, “It’s wonderfully digital without a notary, yet national registrations and rights still bite us. It’s not a true EU Inc. with fewer regulations for growth”.
Regarding the federal government’s €500 billion special fund, Malmendier believes its impact has largely missed the mark. “Investment spending is barely higher than before. Parliament approved it to lift the investment backlog-not for maternity pensions or commuter allowances”. She says this has cost Germany about 50 percent of its potential long‑term growth.
When she left the advisory council, she remarked, “I speak what the data show, not what parties want”. She hopes the council will continue to critique the special fund.