In an interview with Handelsblatt, entrepreneur Martin Herrenknecht paints a stark picture of the state of Germany as a business location. He criticizes bureaucracy, China strategy, infrastructure, and the labor market equally. “Other countries are laughing at us,” warns the CEO, describing a republic bogged down in bureaucracy while competitors act more decisively. His analysis combines economic experience with clear expectations for political action. (handelsblatt: 11.12.25)
Business owner calls for leadership, not symbolic politics
The business owner begins by expressing fundamental trust in the Chancellor. “The Chancellor is doing a good job,” he states. This is followed by a sharp critique of the government’s actions. He argues that the government lacks decisiveness in the face of a “gigantic, bloated welfare state.” Reforms have failed to materialize, despite the pressure having been evident for years. The company head sees primarily symbolic politics at play. Political gestures replace decisive action, while the bureaucracy continues to expand.
This criticism isn’t directed at individual measures, but at the fundamental attitude. The entrepreneur describes a political culture that avoids conflict. For him, leadership is demonstrated by taking difficult steps. This is precisely what is lacking, even though economic risks are clearly evident.
International Perception and Structural Weakness
Germany maintains a visible international presence, but its impact remains limited. Herrenknecht calls for a sober assessment of the results. Other countries protect their industries more consistently. In Germany, consideration for others prevails. The entrepreneur sees this as a structural problem that permeates all levels.
He criticizes the sprawling bureaucracy, particularly at the EU level. Programs are disbursed without securing European suppliers. Responsibilities blur the lines of accountability. For the company head, this is no coincidence, but rather an expression of political complacency.
China Policy: Between Dependence and Naiveté
With regard to China, the entrepreneur chooses his words carefully. His company is “the last manufacturer of tunnel boring machines in the Western world.” This fact demonstrates how far the industrial retreat has progressed. Suppliers from the People’s Republic dominate the market through state support and aggressive pricing. “We have to protect ourselves,” he demands.
Political inaction exacerbates this dependency. While European companies pay high tariffs on exports, products from China reach the domestic market virtually unhindered. The entrepreneur speaks of structurally distorted competition. Without countermeasures, Europe will lose technological sovereignty.
Infrastructure as a symbol of political paralysis
Hardly any issue exemplifies this stagnation as clearly as infrastructure. Tunnels and machinery are ready, but connecting routes are lacking. The entrepreneur points to international projects where technology is delivered on schedule, while permits here take years. “That’s madness,” he comments on billion-euro projects with minimal benefit.
He considers an infrastructure acceleration law essential. Fewer objections and faster procedures could unleash investment. The transportation network determines competitiveness. Yet, he sees primarily announcements, not consistent implementation.
The Labor Market Needs Incentives, Not Coddling
The labor market is also coming under fire. The entrepreneur believes existing regulations are outdated. Job security, long periods of sick pay, and weak performance incentives are not suited to an economy in transition. International comparisons show more flexible employment systems.
“They’re hungry, and we’re satiated,” the CEO says, describing the difference with Asia. Tax-free overtime could create motivation. Instead, debates about shortening working hours dominate. For him, this is yet another example of political denial of reality.
Conclusion of an Experienced Entrepreneur
Despite all the criticism, the entrepreneur is willing to take responsibility. He doesn’t fundamentally reject a moderate wealth tax. At the same time, he warns against regulations that jeopardize entrepreneurial substance. His message remains clear.
“We have to get out of this soft society,” demands Herrenknecht. Germany needs leadership, courage, and clear decisions. As long as politics primarily focuses on administration, his assessment remains: “Other countries are laughing at us.”