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Mercedes CEO Warns Germany Risks Economic Slide and Right-Wing Surge

He urges a shift to market-based incentives with lighter burdens on energy, taxes, and labor to revive investment.

Overview

  • Ola Källenius told Der Spiegel that Germany has been moving in the wrong economic direction for 10 to 15 years and cautioned that failure to change could bolster right-wing populists.
  • He cited some of the world’s highest labor costs and fading productivity gains, arguing policy must make entrepreneurship and investment worthwhile or capital will flow elsewhere.
  • Källenius said Germans need to increase overall working hours, while defending part-time work for specific reasons such as childcare or caregiving.
  • He called for European industrial policy to move away from obligations and penalties toward market-based incentives and large-scale infrastructure investment.
  • On the EU’s planned 2035 combustion-engine phaseout, he welcomed limited technology openness but warned that excessive mandates risk shrinking the market and stifling growth.