Precisely because of the associated fiscal strains, there is hardly likely to be a significant increase in national savings as a result of this reform. However, Germany as a location for investment will probably play a greater role in future in the increasingly important market for pension products. All things considered, there has indeed been some economic policy progress in Germany.
Requiring banks to quantify their risk assessments should push in that direction. The need for more progress within the industry on that front seems clear. Urging better and more complete public disclosure of risk seems equally beneficial to the risk measurement, credit allocation, and investment processes. All of these efforts should proceed.