According to a recent study by Bloomberg NEF, global energy transition investments exceeded USD 2.1 trillion in 2024, reflecting an 11% increase from the previous year. While this marks a significant milestone, it also represents a slowdown from the 25%+ annual growth rates seen in prior years. The key question remains: is this level of investment sufficient?

On June 6, 2024, the European Central Bank (ECB) began its rate-cutting phase after nine months on hold. The main reason for this decision was the Governing Council's assessment that the inflation outlook had improved significantly. In addition, underlying inflation had moderated, further indicating that price pressures were diminishing. As a result, inflation expectations across all time horizons had also declined. This accumulation of positive signs gave the ECB the confidence to start lowering interest rates.

Very soon, Germany will be holding federal elections. The fact that elections are being held is routine; however, the elections themselves are anything but. Not only is this only the second time since the fall of the Berlin Wall that early elections have been held in Germany, but Germany’s fundamental economic model also requires a radical reshaping.