Europe needs a Social Capital Markets Economy

In his recent guest article in Handelsblatt, Deutsche Börse Group CEO Stephan Leithner addresses one of the most pressing challenges of our time: pension financing. The stakes are high – securing our future, ensuring intergenerational justice, and ultimately, preserving social peace. Stephan Leithner underscores that incremental change won't suffice. Instead, he calls for a comprehensive solution that fully integrates the potential of capital markets across all three pillars of the pension system: the statutory pension, occupational retirement provision and private pensions. This requires a regulatory framework that democratizes access to opportunities while effectively managing risks. In short: Europe needs a “Soziale Kapital-Marktwirtschaft”, a “social capital markets economy” – to finally realize Ludwig Erhard's vision of prosperity for all.

As one example, Stephan Leithner proposes that every newborn in Germany should receive not only a tax ID but also a securities account, enabling early retirement savings from birth. A comprehensive reform should include a simple, tax-advantaged retirement savings account that can be supplemented with private contributions throughout life.

Stephan Leithner emphasizes the importance of bold action to use the current momentum of the Savings and Investments Union and establish a social capital markets economy – for a more secure and just future. Deutsche Börse Group contributes with innovative, reliable and efficient infrastructures for the European capital markets.

Read the guest article here (in German): Link