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/ Social Market Economy


Many doomsday prophets felt vindicated by the coronavirus outbreak. They believe that the market economy has failed and that globalisation is the reason why the virus was able to spread. In fact, the opposite is the case. In the face of the crisis the government responded with economic aid programmes and the economy itself proved to be remarkably robust. After a dramatic downturn in the second quarter of 2020 the economy has shown incredible flexibility and resilience, yet this has received very little public attention. The very fast development of vaccines through international cooperations is also proof that innovation is not random, but systematic. When it really counts, national market economies and global capitalism can be creative and innovative.

One of our foundation’s objectives is to support this successful system. At events, in reports and studies, in surveys and in campaigns we promote the principle of social market economy as the mainstay of prosperity – and as an opportunity to overcome the economic upheavals of the coronavirus crisis as quickly as possible.

The pandemic has made the need for modernisation in Germany blatantly clear. An ailing infrastructure cannot provide a solid basis for innovative growth. Digitalisation in rural regions is at the level of a third world country. And excessive bureaucracy is obstructing the development of a thriving start-up culture. We have to change these things if the post-pandemic restart is to be successful. And we have to start thinking about how we will make those changes now.


Author: Professor Karl-Heinz Paqué, Chairman of the Management Board of the Friedrich Naumann Foundation for Freedom

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