Germany’s economic revival efforts suffered a setback on Monday as Swiss pharmaceutical giant Roche announced it would freeze all future investment decisions in the country, citing eroded trust in Berlin’s policy direction.
Daniel Steiners, head of Roche Germany, told *Die Welt* that the company had placed all planned investments “on hold for the time being,” adding that political decisions had “destroyed a great deal of trust” in the pharmaceutical sector. The move follows a July law requiring drugmakers to grant a 15.5% rebate on most branded medicines from next year, up from 7%, as part of cost controls in Germany’s statutory health insurance system .
Steiners criticized the government for prioritizing short-term savings over structural reforms, warning that such measures fail to address underlying issues in the health system. He contrasted Germany’s approach with U.S. industrial policy, which he said actively incentivizes investment. Roche employs over 18,000 people in Germany, and while its ongoing €600 million expansion in Penzberg remains unaffected, the company has not clarified the status of other projects .
The announcement coincided with a government-backed investment summit in Berlin, where Chancellor Friedrich Merz sought to attract business to Europe’s largest economy. Economy Minister Katherina Reiche acknowledged the pharmaceutical industry’s concerns but defended the rebate measures as necessary to stabilize social security contributions. Siemens CEO Roland Busch, speaking alongside Reiche, called Roche’s decision a signal that companies would redirect investments if conditions in Germany were not competitive .
Roche’s stance mirrors broader frustration in the sector. Eli Lilly halved planned investments of €2.5 billion in Rhineland-Palatinate this summer, while Boehringer Ingelheim scrapped €900 million in spending, both citing the same cost-cutting measures. Pfizer has also placed German investments under review .
