This Thursday, the 18th, the German Government launched a fund to stimulate private investments, to which the German State will provide funds and guarantees of 30,000 million euros, which should serve as a lever to stimulate investments of 130,000 million.
According to Finance Minister and Vice Chancellor Lars Klingbeil, the so-called ‘Germany Fund’ should “mobilize private investment to create the jobs of tomorrow”.
“We use public funds in a timely manner so that more private capital is invested in Germany in future sectors such as Artificial Intelligence (AI) and biotechnology, in industry and small and medium-sized enterprises, in our security and our independence in relation to critical raw materials,” said Klingbeil.
The Minister of Economy and Energy, Katherina Reiche, in turn, stated that the decisive thing is to be able to direct capital to where innovation is enhanced and the resilience of supply chains is increased.
“The current situation clearly shows how great the need for investment is for the modernization of our country. The decisive thing is to take private capital to where innovations emerge and Germany’s future capacity is strengthened”, assured Reiche.
The fund, according to a statement from the German Government, will have three pillars: one for industry and small and medium-sized companies, another to modernize the energy sector and a final one for ‘startups’ and expanding companies.
The implementation of the ‘Germany Fund’ will be carried out in stages and three of the planned instruments will now come into operation: a guarantee system for manufacturing industries, a credit program to promote geothermal projects and a financing program for emerging companies.
In 2026, other instruments should come into operation and, later, a program for the construction sector aimed at building affordable housing should be implemented.