ABB boss doubts Germany's ability to implement rapid reforms

The head of the Swiss industrial group ABB, Morten Wierod, has expressed doubts about Germany's ability to reform and warned of job losses in Europe. Politicians are now recognizing the economic problems and are showing the will to change. “The challenge lies in the implementation,” said Wierod in an interview with WELT AM SONNTAG. “I rather doubt the ability to actually implement the necessary measures at speed.”

Germany has a special responsibility in this regard. “Germany is the locomotive of Europe,” said Wierod. As the EU's largest economy, the country must lead the way and bring others along. Economic development in Germany is therefore of great importance for all of Europe.

Criticism of German energy policy

If there are no far-reaching reforms, the ABB boss sees the risk of mass unemployment in Europe. “The danger exists,” said Wierod. The consequences of a lack of competitiveness often only become apparent after a long delay. "When investments take place elsewhere and factories are no longer built here, you often only notice the consequences years later. By then the decision has long been made."

Above all, Europe must strengthen demand growth and get the high energy and raw material costs under control. In the USA and Asia, domestic demand has grown significantly more dynamically over many years. Companies invest where they can find customers. At the same time, Europe has focused too much on regulation in recent years. "So we don't lack talent. However, for many years Europe has focused more on regulation than on innovation."

Wierod also criticized German energy policy. “The premature shutdown of the nuclear power plants was a mistake,” said the ABB boss. In view of the increasing demand for electricity due to the electrification of industry and the economy, Europe must develop new energy sources. Wierod sees great opportunities in small modular nuclear reactors, which could supply electricity to industrial plants and data centers in particular in the future.