Siemens CEO Roland Busch has urged for a significant 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 €500 million across multiple phases, Busch emphasized the urgency of the situation.
He framed the modernization project in Erlangen as a flagship initiative linked to the “Made for Germany” campaign, an effort involving numerous companies committed to investing over €600 billion in the country. This commitment, however, is contingent on the German government swiftly implementing promised structural reforms.
Busch noted a strong alignment between the business community’s demands and the provisions outlined in the current governing coalition agreement. However, he expressed concern over the slow pace of progress, specifically citing the need for reforms to the labor market and social security systems. He highlighted the challenges faced by small and medium-sized enterprises (SMEs), which he said are burdened by disproportionate costs associated with delivered services. Furthermore, he pointed to comparatively low working hours and high rates of sick leave compared to other nations, coupled with concerns that unemployment benefits are disincentivizing some individuals from entering the workforce.
The Siemens CEO also cautioned against diverting funds from the special infrastructure fund, intended for additional investment, to cover budgetary shortfalls. He stressed the importance of ensuring these funds are used as originally intended to bolster the nation’s economic foundation.
