Friedrich Merz speaks at Industry Day: New answers for Germany!

Friedrich Merz speaks at Industry Day: New answers for Germany!

Today, June 23, 2025, Industry Day will take place in the Berlin Gasometer, to which the BDI (Federal Association of German Industries) invites you. Under the motto "New times. New answers", high-ranking representatives from business will meet to discuss central topics that will significantly shape the future of German industry. In addition to Chancellor Friedrich Merz, Finance Minister Lars Klingbeil, EU Trade Commissioner Maros Sefcovic, economist Ulrike Malmendier and Lithuanian Economics Minister Lukas Savickas will be on the agenda. The event is causing quite a stir as Merz will also be traveling to the NATO summit in The Hague the next day.

BDI President Peter Leibinger highlights the challenging situation of German industry and calls for a fundamental change in economic policy. The current situation, characterized by declining competitiveness and an increase of 120,000 jobs lost in the manufacturing sector due to deindustrialization, is alarming and calls for solutions.

The role of the economy in geopolitical times

On the occasion of the upcoming NATO summit, the question of the sovereignty of Germany and Europe in geopolitically difficult times will also be discussed. According to NATO's decision, member states should in future spend 3.5% of their economic output on defense spending and 1.5% on defense-related infrastructure. This makes it clear that industry plays a key role in overall defense, which could have a major impact on the economy in the coming years.

Germany is facing a structural crisis, but several research institutes are already showing the first positive economic forecasts for 2025 and 2026. Leibinger sees a silver lining on the horizon and recognizes that the mood in the economy has improved. The federal government is working on tax relief and reducing bureaucracy. However, it remains important to create good framework conditions for the industry, especially in areas such as energy availability and planning. After all, innovative companies are very popular in Germany.

Strategy for the future

In order to overcome the investment backlog, the DIW (German Institute for Economic Research) advocates a pan-European, competitive and strategic industrial policy. The focus should not be on national champions, but rather on securing long-term innovation and structural change. Funding should be distributed transparently and effectively, with particular attention paid to key technologies such as the digital economy, health and climate-friendly technologies. The aim is to use these measures to strengthen Germany's innovative strength.

Studies by Fraunhofer ISI focus on the growing geopolitical and structural challenges for the manufacturing industry. A central point is the decarbonization of the industry and finding what needs to be done. The focus must continue to be on identifying comparative advantages and strengthening economic areas that are of great importance for the strategic sovereignty of Germany and the EU.

The next few weeks and months will have to show whether the announced strategies and measures are fruitful. Germany needs strong impetus in order to continue to play a key role as Europe's economic engine while the geopolitical framework conditions are changing rapidly.

Further information can be found at: ZDF, DIW, Fraunhofer ISI.