German giants pledge P42T in private investments to revive economy

In a bold move to restore investor confidence in Europe’s largest economy, 61 leading German firms — including industrial heavyweight Siemens and global financial giant Deutsche Bank — have pledged a total of €631 billion (approximately P41.9 trillion) in investments by 2028 under a new campaign dubbed Made for Germany.

The initiative was formally presented on Monday to German Chancellor Friedrich Merz and his economic team at the chancellery in Berlin. It is regarded as one of the most ambitious private-sector investment drives in the country in recent decades.

"We are facing one of the largest investment initiatives that we have seen in Germany in recent decades," Merz said. 

"The investment tasks we are facing cannot be achieved by public budgets alone. On the contrary, the lion's share must be provided by private investors."

The massive capital infusion — equivalent to roughly P41.9 trillion — encompasses spending on infrastructure, research and development, and international investor commitments. However, it remains unclear how much of this amount constitutes new investments versus previously planned expenditures.

The announcement comes as the German government prepares for increased public spending, supported by a recent overhaul of its debt rules and the creation of a dedicated infrastructure fund.

Siemens CEO Roland Busch emphasized the importance of government support in terms of regulatory easing. 

“We need to become bolder and faster, especially when it comes to decision-making and approval processes and, of course, digitalization,” Busch said.

Economist Clemens Fuest of the Ifo Institute welcomed the development, calling it a “step in the right direction.” Still, he cautioned that the long-term impact hinges on whether the initiative represents sustained investment or is a short-term boost fueled by public borrowing.