At the opening of EURO FINANCE WEEK, Federal Chancellor Friedrich Merz emphasised that Germany must fulfil its European role in these times of fundamental change. To this end, Germany needs a new “equity story” – a positive narrative to convey that investing in German companies is once again worthwhile.

Everyone is invited, the Federal Chancellor stressed, to become part of this German equity story. The Federal Government is making its contribution – now all those in positions of responsibility are called upon to help promote investment in Germany, a competitive economy and, with it, prosperity and cohesion.

Read the most important facts in brief here:

• Reforms necessary: According to Chancellor Merz, Germany is a safe haven in this world. Germany combines stability with economic strength. But in view of the current stagnation and ongoing geopolitical crises, reforms are needed. The Federal Government has already set measures in motion – for example, the immediate investment programme and decisions for a massive reduction in bureaucracy. The bureaucratic burden is to be reduced by around 25 billion euros during this legislative period, and innovations in key industries are to be promoted through the adopted High-Tech Agenda, among other measures.
• Work-and-stay agency: However, Germany also needs internationally experienced workers, the Federal Chancellor continued. To this end, the system of immigration into the labour market is being fundamentally restructured: with “probably the biggest digital project of this legislative period,” the work-and-stay agency platform. In three years at the latest, there should be a completely digital system for recruiting foreign skilled workers. Two federal states have already made themselves available for pilot projects.
• Germany fund: The fund is an instrument for mobilising private capital with public funds in order to effectively finance key investments for the future. The Federal Government is providing 10 billion euros for the Deutschlandfonds to close financing gaps in growth and innovation capital. Guarantees and private capital should make it at least 100 billion euros. “This will significantly strengthen the appeal of Germany as an investment location,” said the Federal Chancellor.
• Simplifying financial market regulations: The issue concerns Germany as a financial centre with excessively rigorous banking regulation. Financial market regulations must also be simplified at a European level. The Federal Chancellor once again spoke out in favour of a European capital markets union.

Read the transcript of the speech here (in German only):