German businesses warn EU 'is falling behind in global competition'

A group of leading German businesses has called on EU leaders to implement key reforms to boost the bloc's competitiveness with global players like the US and China, ahead of an informal summit later this week.

Europe's industrial base is under immense pressure, the Made in Germany alliance of 123 companies and investors said in a statement published on Wednesday, one day before EU leaders are set to gather in Belgium to discuss the bloc's economic challenges.

Europe is facing off against nations that control their industrial policy, deliberately deregulate the economy and rapidly expand key technologies, it said. As a result, "many European companies are losing competitiveness every day."

The business alliance, which includes heavyweights like Siemens and Deutsche Bank, called on leaders to make growth the top priority to secure European sovereignty.

Europe needs a change of course, "away from overregulation," they said, calling for reforms to be geared towards technological competitiveness and growth.

Firms also demanded the reduction of red tape, a strengthening of the capital market and swift implementation of new free trade agreements with India and four South American states.

"Europe is falling behind in global competition," said Siemens chief executive Roland Busch.

"Europe must master the critical technologies that underpin industry, energy supply and security," he demanded. "We have everything we need to do this: a strong industrial base, first-class talent and in-depth technological expertise."

Deutsche Bank chief executive Christian Sewing criticized the European Union for not playing to its strengths.

Investors see the potential for catching up, he noted: "There is already considerable interest in investing in Europe again, and it will grow even more if we set the right course now."

The Made for Germany initiative was launched last year in a bid to boost the country's ailing economy. Businesses and investors involved have pledged to invest over €800 billion ($952 billion) in Germany by 2028.