02/20/24 | SAFE: News

Florian Heider: “Germany benefits from more Europe”

At this year's Leibniz Economic Summit, SAFE Director pleads for the growth potential of European markets to be used to counter the economic slump.

At this year’s Leibniz Economic Summit on February 19, the Scientific Director of the Leibniz Institute for Financial Research SAFE, Florian Heider, spoke out in favor of seeking European solutions to Germany’s acute economic problems. “The financial markets are in a good position in the short term, but certain sectors such as car manufacturers and banks are experiencing price discounts and are therefore lagging. Germany and Europe are not perceived as growth markets, but we have all the opportunities right on our doorstep,” Heider said. One such opportunity could be the creation of a joint market surveillance authority.

Innovation could also benefit from more integrated European financial markets. Banks are generally less competitive when it comes to financing transformation because they are primarily active in sectors such as real estate, which are well collateralized. “We have good ideas in Europe, but when it comes to scaling those ideas and bringing them to product maturity, that is not happening in Frankfurt or Paris,” Heider continued.

In the long term, he also sees great potential in the bond markets. Although a European fiscal union has yet to be within reach, Germany could position itself more strongly in this area. “The European market currently lacks German government bonds that offer secure yield prospects,” Heider said.

Source: SAFE