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A review of the construction site of the Stuttgart Railway Station project, noticed on May 22, 2025 in Stuttgart, Germany.
Thomas Niderouler | Getty Images | Gets the image
Despite the recently minted German government is looking for a private sector to help save the country’s sick infrastructure.
Economy Minister Ekaterina Reiche called for monetary injection earlier this month:
“We need speed and investment and we need private capital,” she said CNBC. “Of all the investments we will do, 10% of them can be made from public money, we need 90% of the private sector investment.”
Germany became infused with infrastructure issues after a long period of insufficient information and restrictions related to the financial rules of the country, which led to the destruction of bridges, broken trains and limited digitalization.
According to the coalition agreement, these issues are a top priority for the new government. Germany earlier this year also secured infrastructure and $ 564 billion) infrastructure and a special investment fund in its constitution, as well as amendments to their financial rules that should increase the cost of defense – both are widely regarded as potential enhancements for the country’s economy.
“Overall, there are great opportunities in defense and infrastructure,” said CNBC Greg Fuzezi, Euro -Zone JP Morgan.
According to Stefan Untal, the Director General of the German Bank of Investment and Development, the enthusiasm for German investment capabilities has become global.
“There is great interest … This year I was on the road in New York, London and Zurich. I watch and feel a lot of belonging to Germany.
Robin Winkler, Chief German Economist Deutsche Bank, repeated the mood, saying CNBC that recent political steps could cause a wave of investment in the private sector.
“There was a significant interest in investors in German infrastructure,” he said, noting that the mobilization of private capital would be crucial for the government, “to get a greater blow for his dollar from the new special fund.”
In addition to the Berlin’s plans to spend a large infrastructure, its commitment to the reduction of the curb is also likely to be attractive to investors, Wininkler explained.
“In recent years, infrastructure projects in Germany have undergone excessive bureaucratic and regulatory obstacles. There is now an ambitious plan to reduce these obstacles … We expect these reforms to stimulate investment investment in private infrastructure,” Winclaler said.
Berlin also suggested that this could take additional measures to stimulate private investment, and Economy Minister Reich said CNBC that the government “to form programs and propose a private sector to invest in our infrastructure.”
How much money do you need?
The coral bridge Dresden became a symbol of the state of German infrastructure. It partially collapsed in September 2024, just a few minutes after the last train passed it.
The parts of the Carola bridge over the Elbe collapsed.
Robert Michael/Picture Alliance through Getty Images
According to the transport and environment organization, thousands of bridges across Germany need work and requires Investments worth about 100 billion euros are required.
Elsewhere in German trains, Deutsche Bahn, justify He said that about 150 billion euros would be required to modernize, maintain and expand the existing network.
More widely, a report From the Cologne Institute of Economic Studies, from May 2024, it is necessary that 600 billion will be required within 10 years to move the country forward through the infrastructure.
Uncertainty remains
Issues of investment in infrastructure remain despite political impetus, including the concern of the pressure of time and power, Jens Thiele said, Head of the Finance Projects and Corporation at the Hamburg Commercial Bank.
“It will be interesting to find out how much time the approval process will take to get projects on the RTB stage (ready -made business) and whether there are enough opportunities to develop all these projects within such a tight term,” he said in written comments.
Fuzese JP Morgan also noted that the terms are causing a key problem.
“Investors asked questions about the delivery speed,” he said. “In my opinion,” infrastructure “is very widely defined, and therefore the restrictions in one field can be overcome by doing more in another area.
He added that it was also unclear when – and how successful the goals of the government will be a reality.
For the German government, pressure on quickly to realize their promises engaged in investors and their investment goals.
