BERLIN (dpa-AFX) - The weakness of the German economy is causing concern among Germany's banks. "Our problem here is not a few quarters of weak economic data - but the fact that we lack the prospect of achieving sustainably higher growth rates again," said the President of the Association of German Banks (BdB), Christian Sewing, on the occasion of the 23rd German Banking Day in Berlin on Monday. A political consensus on fundamental reforms is not in sight. "And numerous strikes and protests since the beginning of the year have reinforced the impression that our republic is at a standstill in parts and is blocking itself." Above all, Germany urgently needs more investment, emphasized Sewing, who is also CEO of Deutsche Bank.

Even an opening of the debt brake would not be enough to cope with the enormous need for investment, said Sewing with regard to the discussion about a possible reform of the debt brake. "Investment, especially private investment, is the driver of growth and prosperity." Private investments could only be financed via the capital market.

This is why the completion of the European Capital Markets Union is so important. The need for investment in Europe is enormous. "According to estimates by the EU Commission, the planned conversion of the economy to net zero emissions by 2050 alone will cost around 600 billion euros per year." In this context, Sewing welcomed the results of last week's summit of the 27 EU member states. At the same time, he warned that the topic of the Capital Markets Union "must not take a back seat again after the European elections."

In the summit declaration, the heads of state and government urged "immediate" progress on the capital markets union after years without much progress. Public and private financing is needed for investments in key strategic sectors and infrastructure. In his special report, author Enrico Letta named the mobilization of money from private individuals and companies as a priority. According to the report, there are 33 trillion euros in private savings in the EU - mainly in cash and deposits. Every year, around 300 billion euros of European citizens' savings are diverted abroad - mainly to the USA, it said./mar/DP/ngu