German Chancellor Friedrich Merz is set to host representatives from leading German firms, including Siemens and Deutsche Bank, on Monday to discuss initiatives to boost investor confidence in Europe’s biggest economy.
Following two consecutive years of recessions, and amid little hope that the German economy is set to fare significantly better this year, Merz is hoping to convince businesses to increase investments in the country.
Executives from more than a dozen companies listed on the DAX, Germany’s leading stock exchange index, are expected to be among the representatives from approximately 30 firms, dpa learnt from sources close to the event.
The companies are expected to present details of the Made for Germany initiative and outline upcoming investment projects. The initiative, launched primarily by Siemens and Deutsche Bank, gathers prominent firms with the goal of improving Germany’s investment climate.
Speaking about the recently approved €500 billion ($580 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 faced serious setbacks amid high inflation, surging energy prices and increased international competition seen in the years following the pandemic and the war in Ukraine.
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.
