“Germany without Merkel?”


As Angela Merkel steps down, what policy changes can we expect from Europe’s most influential economy? What will the new Germany, post-Merkel, look like? What influence will this have on the EU? These were the questions guiding Leonard Novy’s talk at the Global Fixed Income Institute’s Annual Summer Roundtable on June 7, 2019, at the Pestana Palace Hotel, Lisbon.


In front of an audience of Institutional investors and portfolio managers Novy described the challenges the German society is facing as as follows: “How can institutions, that have their history and thus logic and legitimacy, change fundamentally without breaking? Harvard leadership experts Ronald A. Heifetz and Marty Linsky famously described the “single biggest failure of leadership” when “adaptive challenges” are treated like technical problems. This – technical management not adaptive leadership – has been Germany’s modus operandi. There is no vision, no consistent, future oriented strategy to tackle the fundamental challenges steming from globalisation, digitisation and demography this country is facing. But it is precisely such a strategy that is needed to remain successfull nd to respond to the aggressive pushback against the globalized, cosmopolitan world, which Germany, like many other countries, is facing.”


The session was chaired by Harvey Shapiro (Institutional Investor, New York).