Germany Courts Foreign Capital at First 'Invest in Germany' Summit
Berlin hosted its first "Invest in Germany" summit, where Chancellor Friedrich Merz promised far-reaching reforms and billions in investment pledges are expected. One commitment has already come from Nvidia chief Jensen Huang.
The German government held its first "Invest in Germany" summit in Berlin to attract foreign capital to the country's economy. The event took place in the former office of East German leader Erich Honecker. The Chancellery initiated the conference, while Chancellor Friedrich Merz promised far-reaching reforms. Pledges worth billions are expected to follow.
One commitment is already public: it came from Jensen Huang, head of the US chip and artificial intelligence company Nvidia.
How credible is the pitch?
This question is analysed in the latest episode of POLITICO's "Berlin Playbook" podcast by Rasmus Buchsteiner and Maximilian Stascheit. They assess how credible Germany's new pitch is and which obstacles could still deter foreign investors.
In an interview, Katharina Beck, the Green Party's spokeswoman on financial policy, warns against a sell-off of domestic interests. Pointing to failed large-scale projects such as the one involving Intel, she calls for better conditions to leverage private capital. The wider question is how Europe can preserve its technological sovereignty without becoming blindly dependent on US investors.
Tension in France
The episode also covers the situation in France. Violent student protests and the return of the "Yellow Vests" movement are putting heavy pressure on the French government. Marion Solletty of POLITICO Paris reports that the demonstrations are far larger than expected, while the state lacks the money to offer concessions. According to the report, this political vacuum chiefly benefits Marine Le Pen and the right.
