As part of the investment plan, the German tech conglomerate is set to build a new 200,000-square-meter technology campus in Erlangen, Bavaria, and expand production capacity.
The investment is vital for Germany, which is facing creeping de-industrialization, as over €135 billion in direct investment flowed out of the country last year alone, while only €10.5 billion came in, according to the German Economic Institute.
Meanwhile, German Finance Minister Christian Lindner is also planning a raft of measures aimed at boosting climate-friendly investments by small and medium-sized enterprises.
The plan, which the government estimates would ease the tax burden on companies and households by about €6 billion a year, includes subsidies to help companies accelerate emissions cuts.
However, experts believe these deals and measures will not be enough to turn the tide in Germany’s favor. Industrial production, along with investor confidence, continues to fall this year.
Additionally, there is growing concern among political leaders and executives that the economic recovery from the winter recession is taking longer than they expected.