Act now: bigger steps for an attractive financial location

Deutsches Aktieninstitut welcomes the fact that the Location Promotion Act (Standortfördergesetz) aims to provide ‘impetus for the mobilisation of private financial resources and the growth of the German economy’.

However, the draft is not enough: in order to strengthen the capital markets in the long term, more ambition is needed in the form of a consistent package of the following measures:

• Growth-friendly reform of stock corporation law: German companies should not have to resort to listing abroad due to a lack of flexibility.
• Streamlining of capital market regulation: less bureaucracy facilitates IPOs and equity financing.
• Strengthening the investor base: Long-term equity investments for broad sections of the population promote innovation, prosperity and stability in Germany as a financial centre.

Our statement recalls this and comments on selected elements of the draft in detail.