RPPA Germany 2023

2023 has been – as I expected – both within RP, Germany and on the European and Global stages, a most challenging year. Uncertainty, nervosity and geopolitical and economical turmoil have kept clients as well as RP awake. The navigation, challenges, and often also surprising opportunities have helped our topline and growth be astonishingly strong, but profitability, nerves and family members have “suffered”. Thus, until the end of the year, it will be interesting if the potpourri of opportunities, challenges and “craziness” continues or if – given the looming recession in Germany – we steer into a possible Abwärtsspirale (downward spiral). For 2024 though, I hope and am optimistic, that more stability (with profitable growth) will return to markets, clients, teams and overall societies.

Politically, 2024 will be dominated by the EU and three Eastern German elections. All four events have the potential to cause turmoil in Germany and bring the Berlin Bubble “scathed” into the super-election year 2025 (don’t forget the US elections in 2024 as well). But operationally, it could be a great 15 months (starting already end of this year) for Chancellor Scholz to start with his large reforms (maybe an Agenda 2030) to write his legacy in the history books of this government term.

Clients should be aware of the connected effects of the new EU Commission and Parliament on the German Government and legislative drive and initiatives, as both are deeply connected and dependent on Kommunizierende Röhren (communicated threads). This effect is something I cannot tell clients enough and subsequently advise, that you ideally have a foot/team/advisor in BOTH capitals/centres of gravity!