Keynote and discussion
Democracy needs prosperity – and prosperity needs freedom
Economist Grimm at the ‘Future Forum on Democracy’: Economic growth has played a key role in recent decades in safeguarding social cohesion and creating scope for political action. // Photos: Michael Mutzberg
At the heart of her remarks was the observation that economic prosperity and democratic stability are closely linked. Economic growth has, in recent decades, made a significant contribution to ensuring social cohesion and creating scope for political action.
Veronika Grimm: “Prosperity does not arise of its own accord”
At the same time, Germany today faces structural challenges: prolonged stagnation, declining productivity growth, demographic change and increasing international competition. “Prosperity does not arise of its own accord,” emphasised Grimm. Dynamic technological progress and entrepreneurial initiative are crucial prerequisites for ensuring that future generations, too, can live in freedom and security.
The economist expressed concern about the loss of economic dynamism and Europe’s falling behind in key future technologies. Whilst companies in other regions of the world are investing heavily in future technologies, Europe is increasingly losing its competitive edge. This is particularly evident in the fields of digitalisation, artificial intelligence and other key technologies. At the same time, there is a growing tendency to seek to resolve political challenges primarily through regulation and state intervention. Grimm warned against losing sight of freedom and personal responsibility as the foundations of the social market economy.
Europe must invest more in economic performance
With regard to international developments, the economist emphasised that freedom and democracy were coming under increasing pressure worldwide. Authoritarian systems were gaining in economic and geopolitical significance. Europe must therefore invest more heavily in its economic performance, technological innovation and its own resilience. “Freedom is not just a moral ideal,” said Grimm. It also requires the necessary economic and security conditions to endure in the long term.
University Rector Prof. Dr Birgitta Wolff thanked Veronika Grimm for her nuanced insights and her willingness to discuss even controversial issues openly. The discussion had impressively demonstrated that prosperity, freedom and democracy cannot be taken for granted, but must be continually re-established, justified and safeguarded.
