INSM’s goal is to adapt Ludwig Erhard’s concept of the social market economy, which has proven itself for decades, to the present in such a way that principles such as entrepreneurial freedom, sovereignty of consumers, initiative and equal opportunities can continue to be a beneficial force.
These principles enable every individual to reach their personal and professional goals through ideas, resourcefulness and dedication. They also ensure continuous innovation – the basis for lasting prosperity.
The initiative sees its role as being a catalyst for market economy reforms that facilitate sustainable growth. This is also necessary to guarantee prosperity and quality of life for future generations.
INSM promotes fair cooperation and respectful dialogue. It is on this account that we seek two-way communication with the spheres of politics, science and the public.
INSM is a cross-sector and cross-party platform and open to everyone who feels committed to the ideas of the social market economy. Its work is funded by the employers’ associations of the metal and electrical industries.
The initiative runs under the GmbH legal form; the full name is INSM – Initiative Neue Soziale Marktwirtschaft GmbH. Its address is Georgenstraße 22, Berlin, and it is a subsidiary of Institut der deutschen Wirtschaft Köln Medien GmbH.
Hubertus Pellengahr has been CEO of INSM since 2010. INSM has an annual budget of about seven million euros. It also maintains a research collaboration with the German Economic Institute (IW).
Public figures function as ambassadors and board members of INSM. Their role is that of advisors and initiators, and they are involved in planning and setting the priorities for the agenda of INSM. Dr h.c. Wolfgang Clement, former Federal Minister for Economic and Labour Affairs and former Prime Minister of North Rhine-Westphalia, is the chair of the board.
INSM is committed to continuously adapting the model of the social market economy to the challenges and changes it currently faces. Key issues associated with these changes are globalisation, demographic change, environmental protection, digitalisation and the knowledge society. The social market economy may have proven itself over decades but with regard to future viability, even successful concepts have to be continually reviewed and, as the case may be, updated. That is why INSM is committed to reforms in a range of policy areas:
Pensions: INSM calls for pension policy measures that are not at the expense of the younger generation and demands the pensions system be made resilient to demographic change, so that the state pension remains the central system of provision for old age in Germany. Learn more.
Public expenditure: INSM advocates for sound budgetary policies within the framework of the balanced-budget provisions. Particularly because demographic change poses major challenges to German budgetary policy, it is important not to limit future financial scope with fresh debts. Learn more.
Education: if you promise equal opportunities, you have to ensure schooling and vocational education that is of good quality and that everyone can access. This requires among other things that the federalist educational structure remain in place. It also needs to be made easier to compare educational providers and there needs to be more competition between them. More intensive individual support is called for where children from families who are educationally disadvantaged or have a migratory background are concerned. Learn more.
You can find an overview of all of our adopted positions here.
INSM is a think tank for market economy issues. It advocates for the principles of the social market economy in a transparent and open manner to policymakers and the interested public. INSM is funded by the associations of the metal and electrical industries. It is not only companies that benefit from INSM’s aspiration of a social market economy fit for the modern world, but also all parts of society.
INSM thinks and acts across party lines. Its supporters come from the entire democratic spectrum. That means it is not belonging to a party that counts, but intelligent arguments and solutions that strengthen the social market economy. We maintain a professional dialogue with all political decision-makers and democratic parties. Our interest is seeing the social market economy firmly embedded in society.
In a functioning social market economy, everyone has access to good education and professional training. Flexible job markets and better reconciliation of family and working life make entering work easier. In this respect, the market economy social system already has a social component. Beyond that, redistribution ensures that those who cannot help themselves receive support from the state.
To guarantee the social aspect of the social market economy, sustainable economic growth is needed. Ultimately, only that which has been produced can be redistributed.
INSM develops, together with scientific support in Berlin, positions and reform proposals and communicates these stimuli to the political, scientific and media communities as well as the public.
To distribute its content, INSM focuses on public relations work, including advertising, press work and the use of digital channels. At the same time, dialogue is at the heart of INSM’s communications work.
In addition, INSM seeks dialogue with policymakers, the scientific community and the public through events. It also commissions scientific studies.
The initiative’s work is supported by public figures from business, science and society.
December 1999: foundation of berolino.pr GmbH in Cologne by the employers’ associations of the metal and electrical industries. The mission of this organisation is the development and management of a modern reform initiative aiming for renewal of the social market economy confronted with the challenges of globalisation, demographic change and the transformation of the working world.
Autumn 2000: the organisation with the GmbH legal form works under the name Initiative New Social Market Economy (INSM) to promote market-economic renewal of our economic and social system. Former Bundesbank President Prof. Dr Hans Tietmeyer becomes chair of the INSM board.
2007: berolino.pr GmbH becomes INSM Initiative Neue Soziale Marktwirtschaft GmbH.
2010: relocation from Cologne to Berlin.
July 2012: Dr h.c. Wolfgang Clement, former Federal Minister for Economic and Labour Affairs and former Prime Minister of North Rhine-Westphalia, takes over as chair of the board