Merz courts investors with defence, AI and chip strategy

German Chancellor Friedrich Merz has used an investor event in Berlin to promote defence, semiconductor and artificial-intelligence projects as pillars of the country’s effort to raise productivity and strengthen economic sovereignty.

The government is seeking to attract capital into industries seen as strategically important, including advanced computing and security technology. Under the “Made for Germany” campaign, companies have pledged more than €800 billion in investment through 2028, according to Reuters. Merz presented the commitments as evidence that investment is beginning to respond to the government’s economic agenda, while acknowledging that high costs and bureaucracy remain obstacles.

Germany also aims to quadruple its AI computing capacity by 2030. Merz called for closer European economic integration and backed the idea of an EU-wide corporate framework, often referred to as “EU Inc.”, intended to make it easier for companies to operate and raise capital across national borders.

The pitch comes as Berlin seeks to turn announced investment plans into stronger long-term growth. The challenge will be to deliver the infrastructure, skills and regulatory conditions needed to make those commitments translate into productive capacity.