Post by Dr. Anastassia Lauterbach

Germany is often described as Europe’s “economic engine,” yet in 2025 that engine is sputtering. Growth has been flat or negative, dragged down by high energy costs, ageing infrastructure, and a shrinking working population that is starting to weigh visibly on productivity and competitiveness. At the same time, Germany lags behind its peers in critical dimensions of digitalization: public digital services are slow, broadband and 5G roll‑out is uneven, and many SMEs still rely on analogue processes despite their world‑class engineering. #Overregulation and bureaucracy—costing German businesses an estimated tens of billions of euros annually—further slow investment decisions and make it difficult to respond quickly to technological shifts. And yet, this is only one side of the German story. When Germans align around a clear, shared goal—from rebuilding after reunification to driving export strength in advanced manufacturing—the country can move with impressive cohesion and discipline. The question is whether Germany can now muster that same focus and courage to reinvent itself for an age of AI and geopolitical fragmentation. Few people are better positioned to reflect on this dilemma than Cornelius Baur. After starting his career with an apprenticeship at Siemens, he studied and completed his doctorate in Munich, then spent three decades at McKinsey, where he led the firm’s German and Austrian offices as Managing Partner from 2014 to 2021. Today, as a board member, investor, and advisor, he sits at the intersection of German industry, global capital, and innovation. Talking to Cornelius gave me a lot of hope. He concluded the interview as follows: “There's a saying about the German national soccer team: ‘Germany always faces challenges. It’s always complicated, but in the end, they always come out on top.’” McKinsey hasn't been big on managing by hope, and I prefer to consider the saying a forecast rather than an artefact. Fabian Billing Dr. Juergen Meffert Savvitas Women Corporate Directors Women Corporate Directors Donnetta Campbell The ExCo Group Isabel Knauf Dr. Martin Sonnenschein Thomas Tomkos