Deutsche Bank CEO Christian Sewing has called for Germans to work harder, citing the country’s economic challenges. Speaking at a Frankfurt conference, Sewing noted that the average German workweek is 34 hours, below the EU average of 36.1 hours. In comparison, countries like Greece and the U.S. have longer workweeks, with 39.8 and 36.4 hours, respectively. Sewing’s comments come amidst significant economic concerns, such as Volkswagen’s potential factory closures and Intel reconsidering its new German factory plans. These events reflect Germany’s sluggish growth, declining industrial orders, and historic underinvestment.
Germany, once an industrial powerhouse, now faces multiple crises, including an energy crisis fueled by the Russia-Ukraine conflict, high interest rates limiting construction, and economic stagnation due to China’s slower-than-expected recovery from COVID-19. Other factors contributing to Germany’s economic troubles include stagnant labor productivity, an aging workforce, and excessive government regulation. Additionally, German automakers have lost ground to China in the electric vehicle market, and companies like BASF are investing abroad rather than domestically due to declining profitability.
Sewing emphasizes the need for Germans to increase their work effort, warning that investors are beginning to doubt the country’s economic resilience and will to recover. This call to action comes after similar concerns were raised by Nicolai Tangen, head of Norway’s sovereign wealth fund, who suggested Americans work harder and are more ambitious than Europeans. While it’s challenging to directly link working hours to GDP growth, there is growing anxiety about Europe’s diminishing competitiveness compared to the U.S.
Despite these challenges, Germany still has strengths it can leverage to improve its economic situation. However, according to Sewing, revitalizing the economy may require Germans to work harder to overcome these growing challenges.