Ahead of Merz investment summit, IW chief Hüther tempers expectations

Hours before Chancellor Friedrich Merz opens an investment summit in Berlin on Monday evening, the employer-backed German Economic Institute (IW) warned against inflated hopes. "Companies don't decide in favor of Germany because of a promotional event," IW director Michael Hüther told the dpa news agency, saying what matters is whether firms can make money in the country and urging the government to push through its reform agenda quickly. "For six years, almost all economic growth has come from public stimulus," he said.

According to the IW, private investment in the second quarter of 2026 was still 10 percent below its pre-pandemic level in real terms. The institute cited geopolitical uncertainty and trade conflicts but above all high costs for labor, energy and bureaucracy. German companies' investment abroad has more than doubled since 2010; Hüther called the growing share of firms citing costs as their motive "a structural problem."

About 200 chief executives are expected at the "Invest in Germany Summit," with Nvidia CEO Jensen Huang as the headline guest. The event opens Monday evening at a former heating plant in central Berlin, followed on Tuesday by a conference day at the ESMT business school in the former East German State Council building. Government sources said first deals are expected, including an artificial intelligence partnership with Nvidia involving German companies.