Friday, June 5, 2026

Bayer CEO Bill Anderson warns of Germany’s competitiveness gap

Bayer CEO Bill Anderson has publicly criticized Germany’s current business environment. In an interview with news outlet t-online, he said the country is facing major economic headwinds and a significant competitive disadvantage as a location.

Energy costs and red tape in focus

Anderson pointed to high non-wage labor costs, extensive bureaucracy and elevated energy prices as key burdens. On electricity prices, he referred to sizeable differences in international comparison, including versus a US region in Texas and versus China.

He also said he does not see meaningful relief despite ongoing debates. Instead, reporting obligations and regulation are, in his view, continuing to expand.

Measured remarks on the federal government

While raising concerns, Anderson avoided broad attacks on the German government. He described Chancellor Friedrich Merz as smart and experienced in both politics and business. At the same time, he argued that Germany needs an inspiring mission to help reignite innovation and entrepreneurial drive.

Warning over potential disruption at the Strait of Hormuz

In the same interview, Anderson also addressed risks for global agriculture. Against the backdrop of the war in Iran and the possibility of disruptions at the Strait of Hormuz, he warned of crop losses and rising food prices. He said a substantial share of global trade in nitrogen-based fertilizer passes through this route.

If restrictions persist, this could lead to lower harvests in the Northern Hemisphere as early as autumn. Anderson added that Bayer would also be affected even though the company does not produce fertilizer. He also pointed to potential shortages in animal feed, which could push up prices for meat, eggs and other food products.