Germany in February 2026: the most important developments in economy
In Germany in February 2026, the most widely reported business story was Siemens Energy. On 11 February it reported record profits, tripling its earnings on strong demand for gas turbines and AI data center equipment, with its stock at an all-time high and its largest-ever order backlog. It also shrank its executive board. Elsewhere in industry, Siemens and Stadler won a multi-billion euro order for driverless S-Bahn trains in Copenhagen, and Deutsche Telekom launched an AI computing center with Nvidia, including a Munich data center with 10,000 graphics processors. BMW and Tesla announced plans to use humanoid robots in German factories.
Chancellor Friedrich Merz's economic diplomacy centered on China. China regained its place as Germany's top trading partner in 2025, while German exports to the United States fell because of tariffs. During his visit to China in late February, Merz warned of trade imbalances, described China as a "critical opportunity", and announced that China would buy up to 120 Airbus aircraft. Within the EU, Macron called for common debt; Merz firmly rejected new Eurobonds on 13 February and argued for structural reforms to improve competitiveness.
Several large companies reported strain. Mercedes-Benz said tariffs cost it $1.2 billion as its 2025 profit fell 57%. Volkswagen overtook Tesla as Europe's leading electric vehicle seller in 2025, but faced scrutiny over cash flow and reportedly plans to cut costs by 20 percent by the end of 2028. BASF is shifting jobs to India and cutting jobs and investment, Bosch agreed with worker representatives to close a production site, and the auto industry lobby warned of a "crisis" as jobs and investment move abroad.
Infrastructure and energy also drew attention. The Berlin-Hamburg railway renovation was delayed indefinitely, and a cyberattack paralyzed Deutsche Bahn's ticket booking systems. Gas storage fell to record lows in Germany and France. The governing coalition agreed to scrap the planned 65% renewable energy rule for new heating systems, and Economy Minister Katherina Reiche announced rules to speed up renewable expansion.
by WorldBrief & Maksim Micheliov | AI-generated summary
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