Deutsche Bank’s CEO urges Germans to put in more hours amid economic squeeze

Deutsche Bank CEO Christian Sewing has made a strong case for increased effort from the German workforce, stating that to overcome the country’s current economic struggles, Germans must simply work more.

Speaking at a conference in Frankfurt, Mr Sewing remarked, “we just need to match the EU average for working hours.” His comments come at a time when Germany faces growing economic uncertainty, as reported by Bloomberg.

The country’s economic slowdown has been making headlines, particularly with news from Volkswagen, Germany’s largest company, considering its first-ever factory closures. Meanwhile, U.S. tech giant Intel is re-evaluating plans for a $32 billion factory in Germany.

Mr Sewing’s focus on working hours reflects a discrepancy. In 2023, the EU average for weekly working hours was 36.1, whereas Germany’s workforce logged just 34 hours. In contrast, Greece surpasses the EU average with a workweek of 39.8 hours, and workers in the United States, a significant industrial competitor, average 36.4 hours weekly.

In Malta, the average number of actual weekly hours worked for an individual’s main job is 37.3 hours, higher than in Germany and the EU average.

Since assuming leadership of Deutsche Bank in 2018, Mr Sewing has called for reforms to prevent Germany from slipping into a reputation as “the sick man of Europe.” He now warns that investors are beginning to question the country’s capacity for recovery. “For over a year, investors have expressed doubts about Germany and Europe’s willingness and ability to perform,” he stated, adding that it’s time for citizens to recognise the need for greater effort.

Mr Sewing’s remarks follow comments by Nicolai Tangen, head of Norway’s sovereign wealth fund, who suggested that Americans work harder and are more ambitious than their European counterparts. While linking working hours directly to GDP growth is difficult, there is little doubt that labour output plays a role in economic performance, raising concerns about Europe’s waning competitiveness with the U.S.

Germany’s economy has struggled to regain its momentum in recent years. An energy crisis, exacerbated by the war in Ukraine, has driven up prices, while rising interest rates have slowed construction and weakened consumer spending. At the same time, Germany’s largest trading partner, China, has failed to recover as quickly from the pandemic as expected, further hampering growth.

The situation has led some major German companies to look abroad for opportunities. BASF, a giant in the chemicals industry, invested $10 billion in a new facility in China rather than at home, citing declining profitability in Germany. The company also announced significant job cuts, a telling sign of the economic pressure facing German firms.

While Germany’s economic challenges are significant, Mr Sewing’s call for increased effort could be the first step towards revitalising the country’s productivity and competitiveness on the global stage.