Kärcher CEO warns Europe faces 'perfect storm' as he calls for economic reforms
Europe and Germany risk deindustrialisation, Kärcher CEO Hartmut Jenner has warned. He is urging major cuts in bureaucracy, incentives for extra work and a firm EU trade policy towards China and the US.
Hartmut Jenner, CEO of Kärcher, warns that Germany and Europe are experiencing a perfect storm of economic challenges. Geopolitical tensions, unpredictable U.S. trade policies, and China's rapid technological advancement are creating a hostile environment for free global trade and export-oriented businesses. China, with its aggressive technological competition and massive subsidies, poses a significant threat to European industries.
Jenner attributes the deindustrialization of Germany to the loss of tens of thousands of jobs and declining production volume in sectors like automotive and manufacturing. Kärcher, a family-owned company founded in 1935, has tripled its staff and turnover since Jenner took over in 2001. The company generates almost €3.5 billion in annual revenue, with more than 1,000 employees dedicated to research and development. Kärcher's global presence spans 87 countries and employs 17,000 people worldwide.
Despite Kärcher's successes, Jenner argues that innovation leaders like his company face increasingly unviable operating conditions due to rising structural and labor costs. He criticizes the German government's forecasts of 1.3% economic growth as misleading, as they are driven by debt, defense orders, and subsidies rather than sustainable private investment.
Jenner blames regulatory fatigue and excessive bureaucracy for stifling entrepreneurship and innovation, asserting that regulations should promote value creation rather than hinder it.
To secure economic prosperity and social standards, Jenner calls for a comprehensive reform program in Germany. This includes eliminating rigid rules, reducing bureaucracy, and cutting energy costs, as well as fostering a cultural shift in the administrative apparatus to better support businesses. Jenner emphasizes the need for incentives to encourage overtime, flexible working hours, and reduced bureaucracy when hiring skilled workers. He also advocates for the EU to take bold action in addressing these challenges.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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