The OECD’s 2025 Economic Survey on Germany stresses the urgent need for structural reforms to overcome challenges posed by global events and long-term issues. Key to this is guaranteeing medium-term fiscal sustainability by enhancing spending efficiency, reallocating funds, and broadening the tax base. Crucial attention must also be given to reforming the pension, health, and long-term care systems to address pressures from population ageing. To bolster economic growth, it is vital to tackle skilled labour shortages and reduce significant administrative burdens and regulatory barriers that impede business dynamism and innovation. The report further recommends improving regional development through better coordinating „place-based“ policies with industrial, infrastructure, and innovation strategies, while concurrently boosting the financial and administrative capacity of local municipalities.
Read the full survey and executive summary on OECD’s website.