61 Companies Pledge to Invest €631 Billion in Germany Over the Next Three Years

Germany is facing the risk of economic stagnation for the third consecutive year. In this context, a corporate initiative called "Made for Germany" has garnered widespread attention. A total of 61 German and international companies and investors, including Siemens, Deutsche Bank, BASF, BMW, Henkel, Infineon, ZF, and Rheinmetall, have jointly pledged to invest approximately 631 billion euros in Germany over the next three years for the construction of new factories, research projects, and the modernization of infrastructure.

The initiative was announced on the eve of a meeting between Federal Chancellor Merz and business executives at the Federal Chancellery in Berlin, aiming to send a strong signal both domestically and internationally: Germany remains an attractive destination for investment. According to official statements, this funding not only includes established capital investment projects but also covers new investments, research and development of new technologies, and commitments from foreign investors, with at least several tens of billions of euros constituting new investments.

The initiators of this "Investment Alliance" include Christian Sewing, CEO of Deutsche Bank; Roland Busch, CEO of Siemens; Alexander Geiser from FGS Global; and Mathias Döpfner, CEO of the media group Axel Springer. They stated that Germany needs a "new operating system" oriented towards the future, and it must be built around growth, technology, and competitiveness. Busch said: "Now is the time to redefine the model of cooperation between politics and business and to share social responsibility."

The German government highly appreciates this initiative. Merz pointed out: “We welcome the confidence that companies have in Germany and its job market. They have made important contributions to achieving economic growth and enhancing Germany’s future competitiveness.” Vice Chancellor and Minister of FinanceLars KlingbeilEmphasize: "We hope to heavily invest in Germany's future, as Germany has the ability to attract top global talent and is a 'safe haven' in turbulent times."

This investment covers multiple sectors of the German economy, ranging from traditional industries, energy, and pharmaceuticals to technology and semiconductors.

• BASF: Constructing a new training laboratory building in Ludwigshafen and commissioning a new high-purity sulfuric acid facility for the semiconductor industry in Hesse.

• BMW: Establishing a new high-voltage battery assembly base in Erlbach-Straskeisn, with the Munich headquarters transforming into a production base for "new generation" models.

• Covestro: Upgraded chlorine production and off-gas purification technology at the Krefeld plant, and introduced a renewable energy steam system in Brunsbüttel.

• Henkel: Continuously advancing the modernization of the Düsseldorf Holthausen Chemical Park.

• Infineon: Building a new semiconductor factory "Smart Power Fab" in Dresden.

• Rheinmetall: Building a Comprehensive German Ammunition Supply Ecosystem

• Schaeffler: Expanding Buehl Electric Mobility Research Center and establishing a new technology center in Herzogenaurach.

• Siemens: Expanding its technology park in Erlangen.

The participating companies include both large conglomerates and startups, spanning various industries such as pharmaceuticals, telecommunications, and energy. International investors such as Nvidia, Blackstone, KKR, and Temasek are also involved.

Despite the optimistic signals from businesses, the business community has also set clear expectations for the government. Several executives publicly urged before the talks that the government should vigorously advance reforms, particularly in accelerating infrastructure approvals, reducing energy costs, improving the labor market environment, and alleviating regulatory burdens.

The political community responded positively. Vice Chancellor Klingbeil and the Minister of Economic AffairsKatherina ReicheBoth indicated that the government will continue to advance the "Investment Boost Plan" and attract more businesses through tax reforms and energy policies.

However, some experts are cautious about the investment data. Fuest, director of the Munich ifo Institute, pointed out that Germany’s overall investment level is still 7 percentage points lower than in 2019. Many companies had already planned the funds they are now committing, so more attention should be given to the actual implementation of new investments. Boysen-Hogrefe from the Kiel Institute for the World Economy criticized that small and medium-sized enterprises, which truly represent the foundation of German manufacturing, did not participate in these high-level talks. He warned the government not to overlook the urgent need of SMEs to reduce bureaucracy.