Written by 14:08 Member, TOP-NEWS

DVFA monthly question February: Investment professionals call for less bureaucracy and pension reform – debt brake is secondary

DVFA’s latest monthly survey of its investment professionals focused on the current election campaign and the upcoming Bundestag elections. “Of course, every general election is relevant. But the immense response and the numerous comments send a strong signal that financial experts definitely see February 23 as a directional election,” says Roger Peeters, Deputy Chairman of the DVFA Executive Board, interpreting the lively participation.

Economy in the election campaign - only one important topic

When asked whether the economy was the central issue in the general election, 52% of the investment professionals surveyed answered “yes”, while 48% stated that other issues were more important. The comments make it clear that although economic issues are considered to be important, the complex of issues surrounding migration in particular is considered to be of similar importance for the outcome of the election.

Negative assessment of Germany's economic situation

There is virtually no doubt among the experts that there is a great need for economic reform in Germany. Three quarters (75%) of the participants see Germany in a double economic misery, consisting of profound structural problems and a weak economy. 20% see the economic situation as primarily a structural problem, while only 5% rate the economic situation as positive overall. Not a single participant assessed the situation as purely cyclical, i.e. cyclical.

Bureaucracy, welfare state and energy costs identified as problem areas

When asked about the most important economic policy measures for the next government, respondents were able to select up to three topics.The most frequently mentioned concerns were cutting red tape (31%), reviewing the welfare state (23%) and reducing energy costs (22%). 10% of survey participants were also in favour of making the debt brake more dynamic and 11% for a reduction in corporate taxes.

Source: DVFA e. V.

Capital market topics for the next government: restructuring private pension provision is essential

In the next question, the DVFA wanted to know from its members which specific capital market issues the next government should address.
The survey participants considered three of the topics available for selection to be particularly important:

– Restructuring the pension system to be more funded (32%)
– Facilitating private pension provision (29%)
– Promoting financial education (22%)

Looking ahead to the upcoming Bundestag elections: no liberation expected

The majority of participants in the DVFA monthly survey do not expect the economy to be lifted.55% assume that the election will only have a minor impact on the markets. 18% consider it impossible to make a forecast as the election result is still completely open.

“The survey results show that economic policy issues are highly relevant for the investment professionals surveyed, but are not necessarily the focus of the election campaign. Structural reforms, particularly in the areas of reducing bureaucracy, the pension system and energy costs, are seen as urgently needed. It is interesting to note that an adjustment of the debt brake is of secondary importance to the participants. With regard to the economic impact of the election, a wait-and-see attitude prevails, especially as there is uncertainty about future political measures,” Roger Peeters summarizes the results.

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