Investment summit in the Chancellery: Hope for the economy in BW!

Investment summit in the Chancellery: Hope for the economy in BW!

Things are buzzing in the Chancellery: Today, July 21, 2025, numerous top managers, including from high-profile companies such as Mercedes Benz and SAP, are meeting with Chancellor Friedrich Merz (CDU). Your goal? Billions in investments in Germany as a business location. The federal government has announced that it will invest an impressive 631 billion euros in new locations, facilities, research, development and infrastructure. A step that is seen as an important signal for the companies in Baden-Württemberg that are strongly committed to this initiative. SWR reports that the investor summit seems like a glimmer of hope for many companies.

But not everyone is optimistic about the future. Matthias Rommel, managing director of the Tübingen company Horn, raises the worrying situation in the industry. He complains about a downward spiral and a recession that has been going on for three years now. “Uncertainty caused by political decisions” is a central problem for many companies, says Rommel, pointing to the constant back and forth regarding electricity tax cuts. Simon Schütz from the Association of the Automotive Industry emphasizes that the investor summit is still important in order to strengthen trust in the location.

Overcoming challenges

The economic situation in Baden-Württemberg is showing signs of a moderate recovery. Like that IAW reports, real GDP growth of 0.5 percent is forecast for the second quarter of 2025. Positive growth forecasts can also be expected for the following two quarters. Nevertheless, the long-term effects of the corona pandemic and the decline at the beginning of 2024, which slowed the recovery, are being felt.

These uncertainties lead Professor Henrik Müller to call for a comprehensive strategy for necessary structural change. Rommel adds that the federal government needs to reduce bureaucracy, keep promises and, above all, set clear guidelines for investments in order to regain the trust of companies.

Economy in the country: outlook and forecasts

Despite the challenges, Baden-Württemberg is resilient compared to other federal states. While federal GDP growth is expected to stagnate in the third quarter of 2025, the country can catch up in comparison. This is particularly due to advances in the automotive industry and other key sectors. However, the uncertainties in the forecasts are omnipresent.

Overall, it remains to be seen whether the federal government's planned investments can provide the urgently needed boost for the economy in Baden-Württemberg. The participants at the summit in the Chancellery are hoping for positive impulses, while at the same time companies have to keep an eye on their locations abroad in order not to be deterred by unfavorable conditions in Germany.