In the call for economic reform, digital transformation, and the courage to change, the 2025 Ludwig Erhard Summit came to a successful conclusion in Güter-Karlsruhe. Representatives from the political, economic, and academic spheres gathered to discuss the reform measures needed for the future of the German economy.
Organized jointly by the Weimer Media Group and the Bavarian Chamber of Commerce, the summit took place from May 7th to 9th. Over 150 speakers and more than 1,000 guests participated in the event, including government officials, corporate executives, scientists, and media representatives. In addition to the main forum, the conference featured specialized workshops, closed-door roundtable meetings, and a new format called “DieBusinessPunk” aimed at start-ups and professionals in the new economy.
The final day of the summit featured a key discussion on the theme of “Germany after the election: Crisis as an Opportunity,” where several prominent figures were invited to discuss the economic policy outlook.
Professor Veronika Grimm, a member of the Economic Advisory Council, bluntly stated that Germany’s current structural problems had already surfaced between 2017 and 2018, long before the recent crisis. She highlighted that excessive regulation, lack of risk-taking, and over-precaution against risks were stifling innovation, especially in crucial areas such as pharmaceuticals, medical technology, and genetic technology.
Grimm urged the government to trust business behavior more, saying, “We need a new economic miracle.” Achieving this goal relies not only on economic measures but also on a shift in social and political concepts. She particularly emphasized the importance of digitization, urging government agencies to lead by example in adopting artificial intelligence to enhance efficiency. She warned, “If the government doesn’t act, others will, and we will lose competitiveness.”
Regarding energy policy, Grimm opposed long-term industrial electricity price subsidies, advocating for price reductions through structural reforms. She also proposed reforms to the social insurance system, advancing mechanisms for capital accumulation to ease the burden on the younger generation. Additionally, the high level of taxation on German companies affects international competitiveness, necessitating moderate tax cuts to improve the investment environment.
At the summit, Grimm emphasized that the government should adhere to Erhard’s concept of policy order: “Politics should sometimes take a back seat, allowing a dynamic society and a fair competitive order to operate naturally. We set the framework, but innovation should be led by entrepreneurs, not just policy papers.”
This viewpoint resonated with the speech of the newly appointed Federal Minister of Economic Affairs, Katherina Reiche. Reiche reiterated the core principles of the social market economy proposed by Erhard, emphasizing that the government should respect business freedom while setting fair rules to ensure economic vitality and social balance. She stressed that the social market economy is not just an economic system but also a social philosophy, highlighting trust in the market’s self-regulation mechanisms.
Reiche also specifically emphasized the significance of competition and innovation for national development. She stated that the government’s responsibility is to create a conducive environment to unleash business innovation potential. To achieve this, bureaucratic obstacles must be removed, investments in future technologies encouraged, and Germany’s leading position in global competition safeguarded.
The aligned perspectives of these two female economists underscored that the state should set the rules while the economy is responsible for achieving growth and progress. This is a modern interpretation of Erhard’s concept of the social market economy.
Speaking of the new federal government, Grimm said, “We should give the new government an opportunity to implement its policies.” She stressed that against the backdrop of tense economic and security situations, Germany must think more Europeanly about strategic issues, including defense, fiscal discipline, and economic policy coordination.
Business figures also expressed clear expectations for reform. Carsten Maschmeyer, an investor at “Lion’s Den,” emphasized the importance of trust and execution speed, stating, “The new economic recovery depends on trust in the government, policies, and the country.”
Christoph Kull, the CEO of Proalpha, called on the government to strengthen cooperation with businesses in the digitization process, saying, “Empower rather than regulate.” Falco Weidemeyer, a senior executive at EY, highlighted that Germany must decide whether to be a “manager” or an “innovator.”
The Ludwig Erhard Summit of this year concluded with a call for all sectors to collectively shoulder the responsibility of reform. Economic transformation and geopolitical challenges require decisive decision-making and structural reforms. The final agenda of the summit, the “Future Forum,” focused on how trust, responsibility, and cooperation can safeguard Germany’s future.
Future studies expert Professor Ulrich Reinhardt called for society as a whole to build confidence and create a new culture of collaboration and mutual success.
Ludwig Wilhelm Erhard (German: Ludwig Wilhelm Erhard, February 4, 1897 – May 5, 1977), a German politician and economist, is hailed as the “father of the social market economy.” He served as the West German Minister of Economic Affairs from 1949 to 1963 and as the West German Chancellor from 1963 to 1966.