As calls for a four-day work week grow louder and louder, a dissenting voice is coming from the boardroom of Mercedes-Benz. CEO Ola Källenius warns that Germany, and with it Europe, is heading for economic disaster if attitudes do not change. His message is harsh: the time for sitting back is over.
In an interview with the German weekly Der Spiegel, Ola Källenius paints a bleak picture of the current situation. According to the Swedish top executive, Germany has been developing in the wrong direction for 10 to 15 years.
The combination of sky-high labor costs, expensive energy and a stifling tax burden makes the country increasingly unattractive to entrepreneurs. “If we do nothing, a dangerous mood looms where populists come to power who have no solutions,” he warns. The fear is that economic malaise will become the breeding ground for political instability and radicalization.
His analysis is sharp and confrontational. Germany has the highest labor costs in the world, but productivity is no longer keeping pace. Källenius uses a soccer metaphor to make sense of the problem:
“It’s like saying before a World Cup that we trained enough, while the opponent trains twice as hard. Everyone knows you don’t become world champions that way.” It’s a direct sneer at the culture in which free time is declared sacred, while competitors in Asia and America throttle down and snatch market share.
Putting in more hours
The solution? Work more. Källenius is not against part-time work for people with care responsibilities, which he calls a wonderful tool for retaining talent. But he sees a trend where working less becomes the norm without necessity.
“We need to make more hours overall again, otherwise our unique productivity machine will jam,” he says He emphasizes that he does not want Asian conditions with 80-hour work weeks, but that the current level is unsustainable if we want to maintain our prosperity. Otherwise, capital will pack up and leave for places where business does pay.
Europe makes mistakes
Not only Germany, but all of Europe is taking the rap. Källenius criticizes the Brussels tendency to regulate everything with obligations, prohibitions and fines. He advocates a radical change of course toward market-based incentives and massive investments in infrastructure.
Whether in the chemical industry, the steel industry or the automotive sector, “Europe is making the same methodical mistakes everywhere and is slowly but surely losing its economic strength as a result.” Bureaucracy acts as a brake on innovation, while other regions are laying out the red carpet for companies.
He is also critical of the 2035 ban on internal combustion engines. While he welcomes the opening for technological alternatives, he warns that too many regulations shrink the market. “You cannot create growth by dictating to people what they should think and want at what time,” he says
It is a clear call to politicians: give business room, or accept that prosperity is evaporating. The time when Europe could lean on past successes is definitely over, according to the Mercedes boss.
Image Source: NL Image / Abaca Press
