Theodor Weimer, CEO of the Deutsche Börse and often referred to as Mr DAX, delivered a blistering critique of German Economic Minister Robert Habeck’s policies. Speaking at a discussion hosted by the Economic Advisory Council of Bavaria, Weimer, a significant figure in both German and international finance, did not hold back in his assessment.
“We’re facing a sheer catastrophe,” Weimer declared, reflecting on his 18th meeting with Vice-Chancellor and Economic Minister Robert Habeck, who is co-leader of the Greens.
Initially, Weimer noted a semblance of optimism, observing that Habeck had shown good listening skills and made some correct decisions. However, that optimism evaporated. “The fundamentalists are increasingly coming through,” Weimer said, indicating a shift in policy focus that he finds deeply troubling.
Plummeting global perception of Germany
Weimer’s address wasn’t just a tirade but an expression of genuine concern. He shared insights from his extensive interactions with international investors, painting a grim picture of Germany’s standing in the global economic community. “Our reputation has never been worse,” Weimer emphasized.
Investors, particularly long-term ones such as insurance companies and pension funds, are bewildered by Germany’s current trajectory. “They shake their heads and ask, ‘Where have the German virtues gone? We don’t know how to read you anymore.’”
These investors, according to Weimer, now approach Germany with a sense of fatalism. “If you continue this way, we will avoid you even more,” they warn. The crux of their frustration lies in what they perceive as irrational policies that have turned Germany into a “junk shop,” with investments driven by opportunistic motives rather than strong fundamentals. “What you are doing is simply insane,” they tell Weimer.
A government lacking direction
The skepticism isn’t limited to economic policy. Weimer reports that political observers from places like Singapore are openly questioning the competence of Germany’s government. “They ask me, ‘What kind of government do you have?’” Weimer said.
He elaborated on the perceived shift towards a “big government” mentality, where the state feels compelled to overprotect. “Economically, we are on the path to becoming a developing country,” he warned.
Impact on key industries
One significant point of contention is Germany’s automotive industry. Weimer criticizes the stringent CO₂ regulations that have, in his view, cornered car manufacturers. “If I buy a BMW 7 Series, I only get a six-cylinder hybrid in Germany, but in the USA, I get an eight-cylinder,” he pointed out, lamenting the pressure to downsize company cars as misguided. “We need big cars to drive growth,” he argued.
Broader policy failures
Weimer’s critique extended beyond economic policies to Germany’s handling of migration and defense. He condemned the country’s migration policies as fundamentally flawed and not aligned with economic necessities. Effective migration in his view should focus on attracting skilled workers who contribute to the economy, not on supporting those who may become long-term welfare recipients.
Additionally, he highlighted Germany’s lag in defense and digitalization as critical areas of failure.
A call for change
Concluding his speech, Weimer invoked a sense of urgency and a need for radical change. The times of glossing over Germany’s economic issues are over, he asserted, quoting the late Wolfgang Schäuble, a famous German politician (CDU) who died last year: “Isch over” (It’s over).
Weimer’s speech serves as a stark wake-up call. It’s a revolt against what he sees as a pestilent green ideology infecting Germany’s economic policies. As international observers watch closely, the question remains: Will Germany heed this call for change, or continue down its current path?
Diego Fassnacht, CFA, is an international economist and an investment advisor to individual clients and institutions. Prior to his work in finance, he served on the governing council (Deutschlandrat) of the youth organization (JU) of the main German opposition party, the CDU.