Germany's Merz touts defence, AI and chip investment drive in pitch to investors

BERLIN, Oct 20 (Reuters) - Germany is investing heavily in sectors including defence, semiconductors and AI to boost its long-term productivity and economic sovereignty, Chancellor Friedrich Merz said on Tuesday as he pitched Europe's largest economy to investors in Berlin.

"Our goal is to create the best possible parameters for you," said Merz at the event with representatives from companies including energy firm Vulcan Energy and defence company Helsing.

Merz is seeking to attract investment from emerging industries as high prices, red tape and a sluggish recovery weigh on Germany's traditional industrial base.

Germany is already seeing positive economic effects from its policies, said Merz, pointing to stronger growth, rising foreign direct investment and increased startup creation.

He highlighted the Made for Germany initiative, under which German companies have pledged to invest over €800 billion euros ($898.40 billion) by 2028.

Merz said deeper European economic integration would help companies tap the European Union's single market and pledged to introduce EU Inc., a harmonised European corporate framework, as soon as possible.

Germany aims to quadruple its artificial intelligence computing capacity by 2030 as part of a broader push to strengthen technological competitiveness, he added.

To support that goal, Merz said he was personally "engaged on the European level" to ensure AI regulation "is opening the door and not closing the door before it happens."

($1 = 0.8905 euros)

(Reporting by Miranda MurrayEditing by Ludwig Burger, Kirsti Knolle)