Bavarian Economic Night: Hatz calls for bold investments for the future

Bavarian Economic Night: Hatz calls for bold investments for the future

Yesterday, on July 14, 2025, the 16th Bavarian Business Night took place under the umbrella of vbw - Association of Bavarian Businesses. V. instead. This celebratory gathering attracted around 500 guests to the picturesque alpine pasture at the horse racing track in Riem. The keynote speaker was none other than Bavaria's Prime Minister Dr. Markus Söder, who emphasized the relevance of the event during his speech and placed the Bavarian business location in the context of future challenges.

At the previous general meeting, Wolfram Hatz was re-elected as president of vbw. Hatz was optimistic about the coalition agreement of the new federal government and the associated economic optimism. He particularly praised the infrastructure investments that have been initiated and the so-called “investment booster” that has already been approved. These measures are intended to counteract the backlog in transport infrastructure and digitalization that has plagued Germany for decades.

Investments as the key to competitiveness

The need for investments is undisputed: Current evaluations by the German Institute for Economic Research (DIW) show that public investments could significantly increase Germany's competitiveness. According to a calculation, an investment volume of over 100 billion euros would increase gross domestic product (GDP) by 1.5 percent over the next four years. This development could in turn boost tax revenues and thus ease the burden on public budgets.

“We have a persistently weak economy that is suffering from demographic change, international competition and incomplete decarbonization,” explained the DIW experts. The share of public investment in GDP has fallen by about a third since 1970 until the financial crisis. Even though there has been a trend towards increasing investment since the financial crisis, the rate remains low, which is weighing on production and income development.

Identify risks and challenges

In his speech, Wolfram Hatz also pointed out the existing risks for the Bavarian and German economies. In addition to Donald Trump's erratic customs policy and increasing de-globalization, he mentioned the ongoing and impending armed conflicts. Hatz appealed to Bavarian politicians to strengthen people's trust in the democratic community and to enable the social market economy to better fulfill its promise of prosperity.

The message is clear: in order to survive as an economy, we need a policy that proactively recognizes the opportunities and focuses on the strengths. The economic awakening in Germany and Europe is not only desirable, but necessary in order to successfully overcome the numerous challenges. Political determination and investments in infrastructure are crucial for the future of Bavaria and beyond.