Reconciling competitiveness and demographic change: a Franco-German imperative
France and Germany are facing parallel demographic shifts that could reshape the future of their economies and their social models. These shifts reflect broader European patterns but are magnified by the central role both nations play in EU governance and competitiveness.
This article gathers ideas based on the discussions held at the 2025 Genshagen Forum. It looks at how France and Germany are dealing with demo- graphic decline – and why this matters for Europe as a whole. It explores the pressures ageing populations put on labour markets, welfare systems and regional balance, and highlights where the two countries diverge and where they must act together. The focus is on practical policy options and the role of Franco-German cooperation in turning demographic risk into strategic opportunity.
This paper resulted from a workshop at the 13th Genshagen Forum for Franco-German Dialogue (June 26 and 27, 2025) with the topic “EU competitiveness: heading or drift?”.
Kevin Genna is Economist, Chaire transitions démographiques, transitions économiques at the Fondation du risque, Paris
Jeanette Süß is Research Fellow, Study Committee on Franco-German Relations (Cerfa) at the French Institute for International Relations (Ifri), Paris
This publication is available on Genshagen Foundation: "Reconciling competitiveness and demographic change: a Franco-German imperative".
Available in:
Themes and regions
DOI
Genshagen Forum for Franco-German Dialogue. Genshagen Foundation, Berlin
Share
Related centers and programs
Discover our other research centers and programsFind out more
Discover all our analysesReviving the German Economy: Balancing Economic, Social, and Defense Priorities
Germany is facing fundamental challenges to its economic and social model and is seeking a new course. The German post-war model was hugely successful, leading to economic strength and prosperity over many decades, but now it is steadily faltering. The previously latent fear of deindustrialization is becoming more concrete, particularly due to the weakening of a key sector: the automotive industry.
Entry into force of the EU-Mercosur agreement: last act of an endless drama for Germany?
At the World Economic Forum in Davos on January 20, 2026, Ursula von der Leyen, the President of the European Commission, stated that "geopolitical shocks can and must serve as opportunity for Europe".
German-Indian Relations: a Partnership based on values or on interests?
In recent years, virtually no other Asian country has seen such a rise in prominence in German foreign policy as India.
The 2026 State Elections in Baden-Württemberg: First Test For Chancellor Merz's Federal Government?
The state election in Baden-Wuerttemberg in March 2026 will be the first major test of public opinion for Chancellor Friedrich Merz's federal government. At the same time, Baden-Wuerttemberg is one of the federal states that—as an important location for the German automotive industry and its suppliers—is particularly affected by the transformation policy driven by climate change and the international conflict constellation.