● Effective integration policies for immigrants are critical for Germany to meet its
humanitarian commitments, improve economic outcomes of the refugee inflows and
ensure social cohesion.
● Higher investment will be key to raise productivity and living standards. There is
particular scope to raise productivity in services through regulatory reform. Reforms to
foster investment in knowledge-based capital and unleash the potential of key services
and would also boost competitiveness of manufacturing, fostering the transition to
“Industry 4.0”, which requires close integration of manufacturing and services. Investing
in key education and social services would enhance inclusive growth.
● Much potential lies in removing barriers for women to develop their professional
careers. There is also scope to further remove barriers to employment and well-being of
older workers. Indexing the statutory retirement age would improve the sustainability of
the pension system.