Deutsche Bank CEO Urges Faster German Economic Reforms

Deutsche Bank CEO Christian Sewing has urged the German government to accelerate economic reforms, warning that slow implementation and political compromises could weaken Germany’s competitiveness and long-term growth prospects.

Speaking in an interview with German newspaper Bild am Sonntag, Sewing criticized Chancellor Friedrich Merz’s coalition government for failing to introduce meaningful changes quickly enough despite correctly identifying the country’s economic challenges.

The Deutsche Bank chief argued that Germany needs stronger structural reforms, particularly in employment regulations, to create a more flexible business environment and support economic recovery.

While acknowledging the importance of worker protections, Sewing emphasized that businesses require greater flexibility to adjust their operations and workforces as economic conditions and technological developments evolve.

He specifically proposed lowering the annual salary threshold for certain employment protections, currently set at €180,000 ($202,000). According to Sewing, Germany’s labor regulations must adapt to increasingly rapid changes in global markets and technology.

His comments reflect growing frustration among German business leaders over regulatory restrictions, sluggish economic reforms, and persistent challenges affecting the country’s international competitiveness.

Sewing also raised concerns about Germany’s political landscape following recent state elections, where parties representing the political extremes gained additional support.

He warned that rising influence from both far-right and far-left political movements could threaten economic stability, discourage investment, and complicate efforts to implement necessary reforms.

The banking executive called on Germany’s established democratic parties to prioritize practical economic policies and demonstrate stronger leadership in addressing structural weaknesses.

Rather than allowing political disagreements to delay progress, Sewing urged policymakers to pursue credible, growth-focused reforms that would improve business confidence and strengthen Germany’s position in the global economy.

His remarks come as Chancellor Merz’s government faces increasing pressure to stimulate economic activity, improve labor market flexibility, and create more favorable conditions for German companies.

Deutsche Bank shares closed at €29.92 on October 9, gaining €0.26, or 0.88%, during the trading session.

Sewing’s warning highlights the broader challenges facing Europe’s largest economy as policymakers balance worker protections, political stability, and the need for greater economic flexibility.

With business leaders demanding faster action, Germany’s ability to implement effective economic reforms could play a crucial role in restoring investor confidence, attracting investment, and supporting sustainable growth.