The Digital Economy on the Move – Three Priorities for the New Government

Germany’s New Government Is Up and Running – What the Digital Economy Is Counting on Now

It’s official: Friedrich Merz is the new Chancellor of Germany. Ministers have been appointed. Now it’s time to get to work – for Germany, Europe and our future.

One thing is clear: The new chancellor and his team have a long list of issues to tackle. Germany’s capacity for innovation has been held back in many areas, and the gap between the country and the international front-runners has grown in recent years.

With the creation of a Federal Ministry for Digital and State Modernization (BMDS), the new government is sending an important signal in support of progress and preparedness for the future. Digital policy is economic policy and social policy – but also power politics.

Digitalization and data are the bedrock of our economy, of all areas of our lives and of a modern society. Any country that hopes to remain competitive must recognize that digitalization has to be addressed across the board – from industry to government administration, from education to the world of work.

There are three key areas where the new government must now focus its efforts:

#1 Digital is now centralized

The establishment of the new federal ministry marks a turning point. Now it’s time to get to work on laying the foundations for a clear regulatory framework. The coalition agreement calls for responsibilities in both the executive and supervisory branches of government to be consolidated, which will ease the burden on every company. Dismantling duplicate structures and speeding up processes are key steps in cutting red tape. We can also hope that centralized management of digital policy will mean a less piecemeal approach and more consistency. This is something our industry urgently needs.

#2 Harnessing the power of data – our opportunity

Data drives progress. From artificial intelligence to a networked industrial sector and digital services, without a modern data culture, we remain spectators when we could be leading players. Despite all the upsides of the new federal ministry, there is one cloud on the horizon: Even though the relationship between data (protection) and digitalization may be clear and self-evident to us, in the political sphere they are still viewed as separate issues. What we need in Germany is a policy that – at long last – recognizes harnessing the power of data as an opportunity. It must be made easier, not more difficult, to use data in a legally compliant and responsible manner. The planned data protection reforms show how serious Friedrich Merz and his government are about addressing this issue. The suggested appointment of a Federal Commissioner for Data Use could be one way of simplifying matters across the entire economy. If Germany wants to take on a leading role again, this would be a clear sign that it’s serious.

#3 Invest in skills development

Digital and data literacy must become the norm in all sectors, age groups and regions. Digitalization can only succeed if we have people who can shape it. We need a real drive to boost skills – extending from schools to businesses and reaching people of all ages. This is the only way to ensure that everyone can take advantage of the opportunities offered by new technologies. Because data makes a difference, as we have shown repeatedly in our campaigns.

Be Bold, Move Forward – The Digital Economy Is Ready

There’s a lot at stake in 2025. Be bold – nothing less than Germany’s future prosperity depends upon it. The digital economy is ready to step up and shoulder responsibility.

Every year, DMEXCO highlights what the sector can achieve. It’s the place where decision-makers come together, where innovations are discussed and future possibilities brought within reach. Our new Digital Minister, Karsten Wildberger, who stood on the DMEXCO stage in 2022, is well aware of this.

I, personally, and all of us at the German Association for the Digital Economy, BVDW, are looking forward to a successful collaboration: One that’s solutions-oriented, productive and ambitious. True to the DMEXCO motto: Be bold. Move forward.