German firms vow to invest billions of dollars in country

(MENAFN) Over 60 major German corporations, including Siemens and Deutsche Bank, have collectively pledged to invest 631 billion euros (approximately 735 billion U.S. dollars) in Germany by 2028, aiming to restore confidence among investors, according to reports.

The initiative, named "Made for Germany," is set to be officially unveiled to Chancellor Friedrich Merz and Finance Minister Lars Klingbeil later on Monday. This commitment encompasses capital expenditures, research and development efforts, and contributions from foreign investors.

This move comes as Germany tries to overcome sluggish economic growth and attract private investment, bolstered by recent fiscal reforms and the establishment of a dedicated infrastructure fund.

The country’s industrial sector has faced pressure from rising energy costs and structural issues, fueling calls for significant reforms.

Roland Busch, CEO of Siemens, emphasized the need for "political courage for structural change, and bold steps must follow," adding, "But we also need companies that believe in Germany as a location and are ready to invest. Both must come together quickly to build momentum."

He also mentioned that the participating companies intend to urge the government to speed up approval processes for infrastructure projects and implement stronger policies to mitigate labor shortages.

Clemens Fuest, head of the ifo Institute, viewed the initiative positively but expressed doubts about its lasting effect, questioning "whether this is truly sustainable, or just a short-term boost driven by public borrowing."

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