Merz is fighting for investments: Germany needs new impulses!

Merz is fighting for investments: Germany needs new impulses!

Today, Chancellor Merz met with leading representatives of international companies in the Chancellery in Berlin to discuss improving Germany's attractiveness as a business and financial location. At this meeting, the black-red government's plans, in particular the “special infrastructure fund”, were presented. Merz emphasized the urgency of private investment in order to overcome the economic challenges. Further details about the participants in the conversation were not disclosed.

The discussion takes place against the background of a significant decline in foreign direct investment in Germany. According to that vfa In 2024, less than a third of the direct investments in 2020 will flow into the Federal Republic. This indicates that the attractiveness of Germany as a business location has declined significantly.

Challenges for German industry

German industry is currently facing considerable pressure. An increase in the stock of foreign capital in Germany contrasts with the declining number of direct investments. This is also reflected in international capital flows, which reflect the expectations of international investors. The new federal government has the task of revitalizing the economy in the short term and introducing fundamental reforms for long-term growth.

In order to overcome the challenges, various measures are required. This includes investments in modern facilities, the acceleration of research and innovation processes and the creation of attractive conditions for international skilled workers. The USA and China are exerting considerable international pressure; The USA in particular benefits from capital inflows and investment incentives through the Inflation Reduction Act (IRA).

Strategies to revitalize Germany as a business location

The upcoming government strategy provides for tax measures and special depreciation for fixed investments. An important step will also be increasing the research allowance. In addition, new special funds should provide public budget funds to improve the infrastructure. The implementation of processes that were already initiated by the previous federal government is also necessary in order to optimize site conditions.

On July 21st, Merz is planning another meeting with German company bosses to discuss measures for an investment boost. Initiatives to attract skilled workers and industrial policy strategies, including a strong pharmaceutical strategy, should be continued in order to strengthen planning and trust in Germany as a location.