Constitution celebrates 75 years: ensuring Democracy and the social market economy

On 23 May 2024, the constitution will turn 75 years old, certainly a reason to celebrate. The anniversary will be honoured in Berlin with a state ceremony and a festival for democracy. Deutsches Aktieninstitut is also celebrating this important day against the backdrop of attacks on the values of the constitution and a war in Europe. Our constitution not only lays the foundation for a democratic and liberal state, but also for the social market economy, which citizens, the state and society benefit greatly from.

"As the foundation of our democratic, peaceful and liberal coexistence, our constitution is a great achievement and cannot be taken for granted," says Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. "Democracy and the rule of law are an important basis for a well-functioning economy. Companies' access to the capital market is directly linked to their ability to contribute to the political and social goals of prosperity and transformation," says Peucker.

Fundamental rights enable a social market economy

Since it was drawn up and promulgated on 23 May 1949, this date has been known as the "Day of the Constitution". The social market economy is not explicitly mentioned in the constitution. However, it is actively promoted through the commitment to a social and democratic form of government and the establishment of certain fundamental rights. These fundamental rights include the right to private property, the right to free choice of occupation and employment as well as freedom of contract and freedom of association. These fundamental rights allow the development of a market dynamic that makes economic growth possible. In the social market economy in particular, the state sets rules in order to achieve not only economic growth and prosperity but also social security for all those involved.

Capital for companies and returns for savers

To ensure that companies can cover their capital requirements and savers can partake in and benefit from productive capital and its returns, Deutsches Aktieninstitut works with legislators, regulators and the public to create attractive framework conditions for shares and the capital market. The connection to the social market economy remains as relevant as ever. This is also underlined by the Meritum Prize for a German Business that strengthens democracy and the social market economy, which Deutsches Aktieninstitut has been awarding since 2019. In 2024, the Pulse of Europe Initiative received this award for its commitment to a united and democratic Europe.

"Our democratic values are at stake and should be defended not just on 23 May, but every day. We must make it clear that the solutions to the diverse economic, geopolitical and social challenges do not come from populists. Extremism, a longing for autocratic order and xenophobia are poison for our business location," says Peucker.