Banking Meets Transformation – with Prof. Dr. Lars P. Feld

On 20 February 2026, the Centre for European Transformation (CfET) co-hosted “Banking Meets Transformation: Heraus aus der Industrieschwäche” together with Bankenverband Mitte, hosted by Goldman Sachs, examining how financing can help renew Germany's Mittelstand and support economic growth, investment, and innovation.

A shared diagnosis: a supply problem, not a demand problem

Representatives from the financial sector, academia, and industry, together with Prof. Dr. Dr. h.c. Lars P. Feld, Director of the Walter Eucken Institute, discussed how Germany can overcome its current industrial weakness. The clearest conclusion: Germany's challenge is less about demand and more about supply-side constraints holding back investment and growth.

Three key takeaways emerged from the discussion:

• Competitive framework conditions unlock investment — particularly by addressing high regulatory burdens, the tax environment, and rising labour and energy costs.
• Investment follows trust — companies invest where framework conditions are reliable and predictable, making policy clarity and stability critical for long-term decisions.
• Capital markets should be used more effectively — greater capital-based funding in pension provision can strengthen individual retirement savings, mobilise investment capital, and support capital markets long term.

Clear challenges, clear solutions

The discussion reaffirmed that the key challenges are well understood and that solutions are already on the table. The task now is to create the right framework conditions so that companies invest, innovation can flourish, and Germany can return to stronger growth.

With thanks to Bankenverband Mitte for their partnership, and to Goldman Sachs for hosting the event.