Analysis of regional growth drivers in selected German federal states

What targeted interventions can help to better use untapped potentials and address structural disparities in and between EU Member States?

Many identified reform and investment needs address the national level. Especially in federal countries these are not necessarily sufficient to boost competitiveness. National and regional reforms and investments need to be in harmony. To complement the existing understanding of reform and investment needs at national level in Germany, DG Regio has contracted our colleague Sabine Zillmer as expert to conduct a complementary analysis for four German federal states with different regional contexts and needs. The assignment shall identify possibilities for tailored actions while considering the relevant global context and EU policy priorities. To obtain insights across different but typical regional contexts, the assignment focuses on

- North Rhine-Westphalia as an example of a post-industrial transition region;
- Bavaria as example of an innovative region with a strong export focus;
- Saxony as a region facing ongoing sectoral restructuring while catching up;
- Mecklenburg-Western Pomerania as an eastern and rural, coastal region with several peripheral territories.

Client: European Commission, DG Regio

Duration: June - December 2026