East German Economic Forum: Merz Expected in Bad Saarow – Politics and Business Discuss the Economy

On Tuesday morning, the conference will move even more into the political spotlight: Friedrich Merz (CDU) is expected in Bad Saarow at 9:55 AM. He plans to give a speech and then participate in a discussion round with industry managers about the current state of the German economy.

Merz and Wildberger as Political Heavyweights

Karsten Wildberger (CDU) has also announced his participation in the forum. This underscores the federal government's emphasis on the importance of digitalization for the economic renewal of East Germany. Representatives of federal and state politics will thus continue the dialogue with the business community that began on Sunday.

According to the organizers, the conference will focus on the opportunities and problems of economic development. The main topics include competitiveness, energy costs, location policy, and the future of industrial value creation in East Germany and the surrounding regions.

Economy Under Stress Test

The timing of the forum is explosive: According to conference participants, the German economy is not emerging from its phase of weakness. For months, industrial sectors such as steel and chemicals have recorded declining orders, and consumer sentiment remains subdued.

External factors add to the pressure: The consequences of the Iran war are further hindering a potential economic upswing. Rising energy prices and uncertainties in global supply chains are increasing the pressure on Germany's export-oriented industry.

As early as Sunday, Manuela Schwesig and Dietmar Woidke had jointly pointed to the urgent need for rapid economic strengthening. Both see the federal government and the states as equally responsible.

State Premiers Demand Swift Action

Schwesig advocated for a federal-state summit that should also include representatives from business and trade unions. The goal must be to agree on concrete measures to stabilize the economy and secure jobs.

At the same time, the SPD politician called for further relief on fuel prices. High fuel costs are particularly burdensome for commuters and small and medium-sized enterprises in rural areas, she explained.

Woidke, in turn, emphasized the necessity of reforms to preserve the social welfare state in the long term. Without profound modernization in pension, long-term care, and labor market policy, there is a risk of losing social cohesion. Both heads of government also warned of possible deindustrialization in Germany if political responses are not forthcoming.

Semiconductors and Grid Operators at the Table

Companies from the new federal states active in strategically important sectors are also participating in the forum's discussion rounds. These include the semiconductor manufacturer Infineon Dresden, which is considered one of the region's major industrial hopes. The company is investing heavily in expanding its production capacities and exemplifies the transformation of the East German economic structure towards high-tech industries.

Also represented is the transmission system operator 50Hertz Transmission, which operates the high-voltage grid in large parts of East Germany. The company plays a key role in the expansion of renewable energies and the modernization of the energy infrastructure, which is crucial for attracting energy-intensive industries.

The participation of these two companies also makes it clear which future fields the conference considers particularly relevant: semiconductor and microelectronics production, as well as the expansion of energy infrastructure. Both sectors are considered East Germany's locational advantages in competition with other European regions.

Expectations for Federal Politics

Politically, the forum falls into a phase where the federal government intends to reassess its economic policy course. After the absence of a noticeable upswing in the first half of 2026, answers to rising energy costs, bureaucratic burdens, and international trade risks are high on the agenda.

Observers expect Merz to send concrete economic policy signals in his speech in Bad Saarow. The focus is likely to be on location policy, accelerated approval procedures, and investments in key technologies. The subsequent discussion with business representatives will show how great the consensus between politics and companies on the next steps actually is.

The East German Economic Forum has been considered an important meeting of politics and business with a view to developments in the new federal states for years. This year, the event gains additional weight due to the ongoing economic weakness and geopolitical tensions. Expectations for responses from Berlin and the states are correspondingly high.