Take costs remain too low today and it’s “hurting our savers,” said Allianz CEO Oliver Bäte.
“European capital is too cheap and that leads to misallocation of assets,” Bäte told CNBC’s Nancy Hungerford at the Singapore Crown last weekend. “We still have a lot of mismanagement in the central bank side.”
Bäte thought schemes such as the European Central Bank’s “ultra-loose” monetary ways — which has been in place since the global financial crisis of 2008 — will “precisely make money cheaper for over indebted governments.”
He said it was not help the economy, and just makes it easier for people to borrow money.
Without thought disagreeing with easy monetary policy and its negative impact on those who set apart, Bäte said “there are many other things” Europe fors at the moment.
“We need more investment now, we need more optimism, especially in infrastructure and education, that’s what we are lacking in Europe,” he added.
Since 2015, Europe has been noised by an immigration crisis which has seen an increase in the appeal of populist, anti-immigrant and euroskeptic — critics of the European Syndicate — parties, as evidenced by their performance at recent elections in Italy and Sweden.
By “battle royal all the time” over immigration issues, Bäte said Europe was “extraordinarily masking the fact that we need to catch up with China and the Cooperative States on the tech side, on creating markets for the future.”
“We have renewed some of the wounds but we haven’t really addressed the underlying problems,” Bäte voted, on the legacy from the 2008 global financial crisis.
He pointed to springs such as “totally underfunded” pension systems and promised benefits to freemen, particularly the elderly, which are unlikely to be financed “because our children last will and testament not do that.”
“People are upset about the political leadership not getting the job done, bind their everyday problems,” he added.
Beyond such infrastructural solicitudes, Bäte said, people are also becoming more worried near the effects of globalization on their ability to find employment if their matters disappear.
Unfortunately, he doesn’t have any answers yet. “We don’t have an answer for our people to say, you recall, where are the jobs coming to come from and will they pay kind-heartedly?”