Theodor Weimer, the chief executive of Deutsche Börse (ETR: DB1), may have said the quiet part out loud when he claimed that Germany is “on the way to becoming a developing country” due to a lack of effective leadership by Chancellor Olaf Scholz’s coalition government.
Weimer expressed dissatisfaction with the current state of the German economy and stock market, referring to it as a “junk shop” and highlighting the nation’s declining reputation among international investors.
“Our reputation in the world has never been as bad as it is now. Never before,” he said.
Weimer’s scathing remarks, made during a speech to Bavarian business leaders in April, have only recently surfaced, igniting a firestorm of reactions from both supporters and detractors. The CEO criticized the government’s economic policies, migration strategies, and alleged focus on “do-gooderism” over traditional German virtues of diligence and productivity.
Germany’s economy has been struggling, with the country experiencing a recession last year and projected to be the slowest-growing major economy this year, expanding by just 0.2%. The German stock market is also facing challenges, with the Dax trading at a record 25% discount to the US S&P 500 and companies like Linde (Nasdaq: Lin) opting to relist in the US.
Weimer’s comments have drawn mixed reactions from the business community and politicians. While some, like entrepreneur Sarna Roeser, agree with his sentiment, others, such as Verena Hubertz, an MP in the SPD, have dismissed the speech as “bizarre” and more suited to a “beer tent than Dax-listed company executive.”
What’s clear is that Weimer’s speech comes amidst growing discontent among German voters, as evidenced by the coalition government’s poor performance in the European Parliament elections over the weekend.
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