Scholz announces German industry summit and “new industrial policy agenda” ahead of EU summit

German chancellor Olaf Scholz has unveiled plans to hold an industry summit later this month in a bid to address the ongoing woes in the country’s manufacturing sector. Scholz will invite representatives of companies, labour unions, and industry associations to debate possible pathways out of the country’s current economic stagnation. “I will present the results of this meeting to parliament and propose to implement it,” Scholz said in a government declaration in Berlin, news agency dpa reported in an article published by Zeit Online.

Scholz’s announcement came shortly before an EU industry summit on Thursday and Friday in Brussels that addresses Europe’s competitiveness. In his report on EU competitiveness, former European Central Bank chief and Italian prime minister, Mario Draghi, called for more industrial policy coordination within the bloc, more rapid decisions, and massive investment to keep pace with economic rivals the United States and China. Germany, as the EU’s biggest industry location, has a special responsibility for and interest in ensuring that European manufacturing withstands international competition.

Speaking in Brussels before the start of the EU industry summit, Scholz called for placing the issue of competitiveness at the centre of the future Commission's activities. "It is obvious that Europe has some catching up to do in terms of growth prospects, productivity and technological progress," Scholz said.

Contrary to many other countries, Germany “has not given in to the temptation to say ‘industry no longer matters’ and finance is the only thing you need’”, the chancellor from the Social Democratic Party (SPD) argued in parliament. He vowed that the government would fight for millions of industry jobs and help forge “a new industrial policy agenda” for the country.

Scholz accused Friedrich Merz,  leader of the conservative Christian Democratic Union (CDU), of lacking respect for the working class and blaming people for “not working enough”. In return, Merz said Scholz had turned the government declaration into a “desperate election campaign speech” one year ahead of the planned 2025 elections.  

Gearing up for next year’s election, Scholz’s SPD eyes working class votes as a focus of its campaign. A position paper by the party proposed a “Made in Germany” bonus that should provide financial incentives to companies that invest in “future industries and good jobs” in the country.