Merz unlocks €631bn in investment at "Made for Germany" meeting. (picture alliance/dpa | Katharina Kausche)
Chancellor Friedrich Merz spoke of "one of the largest investment initiatives" seen in Germany in recent decades at a business summit where projected investments totalling €631 billion ($735 billion) by 2028 were announced on Monday.
As part of his efforts to turn the German economy around, Merz is focusing on creating more attractive conditions for significantly increased business investments in Germany.
Larger public investments could be enormously enhanced by additional private capital, the conservative politician said after a meeting with representatives of an initiative involving several corporations at the Chancellery in Berlin.
"We want to unlock this potential and thereby trigger further growth effects," Merz said, adding that structural reforms should also be implemented at the same time to create better conditions.
The Made for Germany initiative includes 61 large companies from various sectors and investment firms, which are projecting investments totalling €631 billion in Germany by 2028.
The money is expected to go towards new industrial sites and factories in Germany, but also into research and development and the modernization of infrastructure.
Representatives from leading German firms attended the business summit, including Siemens and Deutsche Bank, to discuss initiatives to boost investor confidence in Europe's biggest economy.
Following two consecutive years of recession, and amid little hope that the German economy is set to fare significantly better this year, Merz was hoping to convince businesses to increase investments.
Deutsche Bank chief executive Christian Sewing said after the meeting that they are experiencing "a government that is picking up speed" and has growth and competitiveness high on its agenda.
Siemens chief executive Roland Busch spoke of a "new form of collaboration between business and politics." To unlock the announced billions, he said that politics should regulate less and give companies more freedom.
"We welcome the companies' confidence in investing in Germany and its jobs," Merz said ahead of the meeting. "In doing so, they are making an important contribution to more economic growth ... At the same time, they are sending a powerful signal to international companies to invest more heavily in Germany again."
Speaking about the recently approved €500 billion special fund for infrastructure and climate protection projects, a government spokesman noted last week that the state is prepared to make upfront investments, but emphasized that public funds alone will not be sufficient.
The German economy, once envied across Europe, has endured major blows amid high inflation, surging energy prices and increased international competition.
Merz's government, which took office in May, has vowed to kick-start the economy, and parliament has since approved tax relief measures worth billions of euros aimed at encouraging more investment.
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