At a press conference in Frankfurt today, Jay Ralph, Chairman of Allianz Asset Management and Member of the Board of Allianz SE, and Michael Heise, Chief Economist of Allianz SE, presented Allianz's views on the future of Europe.
The long-running debate about the crisis in Europe has been dominated by crisis management, the costs of the various rescue efforts and bleak economic data from the peripheral countries. What has been missing is a clear target picture of where Europe should strive to be ten years from now.
Jay Ralph: "To regain investor confidence, Europe must finally get to grips with the crisis and stake out a clear path leading to renewed economic dynamism. Prolonged uncertainty and indecision scares investors off. Stability and predictability are the foundations of an attractive investment environment."
The importance of Europe as an economic and political force in the world has been dwindling in recent years. This process is set to continue in a world with newly emerging powers. The challenges of demographics and mobility are mounting drastically. Asia's population is set to grow by a further 1.7 billion over the next four decades, and Africa, an immense continent five times larger than Europe, will have a population of 2 billion, half of whom will be under 20 years old. Europe on the other hand will see its population fall by 20 million by 2050. No one single country in Europe will be in a position to exert major influence on the foundations and the values of tomorrow's world economic and political order.