The CEO of Siemens, Roland Busch, has urgently called for an acceleration of economic reforms in Germany, warning that the nation’s competitiveness is diminishing daily. Speaking at the groundbreaking ceremony for a new technology campus in Erlangen, where Siemens plans to invest a total of €500 million across multiple phases, Busch emphasized the need for swift governmental action to complement ongoing private investment.
The Erlangen campus is being presented as a flagship project for the “Made for Germany” initiative. This initiative has already garnered commitments from numerous companies, pledging over €600 billion in investment within Germany. The initiative’s overall objective is to stimulate economic growth through a combination of private investment and strategic governmental reform.
Busch stated that the business community’s demands largely mirror commitments outlined in the current coalition agreement. However, he expressed concern over the slow pace of implementation, specifically highlighting the need for reforms within the labor market and social security systems. He pointed to challenges faced by small and medium-sized enterprises (SMEs), citing disproportionate costs associated with delivering services. Concerns were also raised about the comparatively limited working hours and higher rates of sick leave experienced in Germany compared to other nations. Furthermore, he suggested that the level of citizen’s income may be unintentionally discouraging some individuals from entering the workforce.
Busch also stressed that funds allocated from the special asset fund for infrastructure must be utilized for additional investment projects and not diverted to compensate for budget deficits. The sentiment underscores a desire to ensure public funding directly supports the intended purpose of stimulating economic growth and bolstering Germany’s position in the global market.