There is always an element of psychology in economics. If companies are confident they can do good business in the future, they will strongly invest. If prospects look poor, they will hold on to the money.

The COVID-19 pandemic with its collapse of international supply chains, the war in Ukraine, the subsequent energy crisis and inflation, the weakening economy in China — all took a heavy toll on the export-oriented German economy.

Economic activity nosedived. Germany slid into a lasting recession. Since then, optimism has not returned. The Organization for Economic Co-operation and Development (OECD) registered a lower investment ratio for Germany in 2024 than all other 38 member countries.

That will soon change, according to the heads of leading companies in Germany. A total of 61 of them, including corporations such as Airbus, BASF, BMW, Deutsche Börse, Mercedes-Benz, Rheinmetall, SAP, Volkswagen but also the US corporations Nvidia, Blackrock and Blackstone — have launched the initiative "Made for Germany."

The name is reminiscent, deliberately, of the slogan "Made in Germany" which has become a symbol of quality.

Together, the corporations representing a third of the German economy want to invest €631 billion ($733 billion) in Germany over the next three years. The money will go toward new and existing factories, as well as research and development.........

© Deutsche Welle