As we approach summer, the economic sentiment is gradually improving, but we should not be complacent as many challenges remain: not only in the UK, but also on the continent. With European elections likely to boost populist parties, there is a risk that we will not see the prioritisation of a European agenda for economic growth. As a result, we may all become poorer, as the rising costs of addressing the manifold challenges will not be met by corresponding increases in income.
In a recent article in The Economist, I read that on a global scale, the millennials of today are better off than previous generations. Of course, this may not always be the case in the West, as we are increasingly a minority on the global stage. Therefore, in hesitating to make the right decisions to foster growth and development in our own economies, we may soon observe an exacerbation of our problems, running the risk of entering a vicious cycle. Therefore, it is crucial for us and our leaders to take responsibility and help to forge a more promising path for the future.
In this context, it is important that we place a stronger emphasis on freedom, especially the type that allows people to take their lives into their own hands to better themselves and improve their circumstances. To some extent, this may require a cultural shift away from expecting constant protection from negative external developments (sometimes or even often these may well only be perceived hardships), towards embracing individual responsibility.
The current German government has not scored too well in this regard, but what can we expect from the next British government? Most are anticipating that Labour will win the upcoming UK election and if this holds true, we have been promised the highest growth of all G7 nations. In order to achieve – or even come close to this goal (i.e. American growth rates) – some elements from the Blair years may have to be revived. The concept of a “hand up, not a hand out” immediately comes to mind. At the time these ideas were often successfully exported to the continent and Britain may now have the opportunity to lead once more under a potential new government. Nonetheless, the question remains: will it seize the opportunity to develop and implement a new vision for the future?
Dr Ulrich Hoppe
Director General
German-British Chamber of Industry & Commerce
