US EditionGermany launches €30 billion fund to mobilize private investment
The fund uses €30 billion in public guarantees to attract €100 billion from private investors for startups and sectors like AI, defense, and energy, officials said.
- On Dec 18, Germany unveiled the Deutschlandfonds, a 30 billion euro initiative to mobilize private capital for energy transition, technology, and industrial modernization.
- To counter competitive pressures, the government is leveraging guarantees to mobilize private investors aiming to gather up to 130 billion euros in startups and critical sectors such as artificial intelligence, defence and robotics, while economists say more measures are needed.
- Specific measures include up to 8 billion euros in guarantees for industrial transformation projects, a 600 million euro guarantee framework for geothermal drilling, and expanded venture capital via Zukunftsfonds II, while KfW will finance defence exports and support lending to small and medium-sized companies.
- Klingbeil said, `We are creating a one-stop shop that you can call or email, a place where investors can be while we try to get Germany back on track,` as officials acknowledged more work is needed.
- Officials say the fund reflects lessons from the Russian war of aggression in Ukraine, emphasizing the need to innovate quickly on security and defence, while analysts warn broader reforms are needed amid downgraded growth forecasts this month by the Ifo institute.
24 Articles
24 Articles
Germany’s “Deutschland Fund” Bets Big On Private Capital To Restart Growth
Key Points Berlin has launched the Deutschlandfonds with a goal of mobilizing up to €130 billion for start-ups and strategic industries. The lever is about €30 billion in public backing, mostly guarantees, meant to attract roughly €100 billion of private capital through a KfW-linked entry point. Supporters see a needed jolt for a stuck economy; […]
The Federal Government is launching the long-awaited German fund, which is to attract investors from abroad. Behind the slogan are complicated financial instruments – and a central billion-dollar hope.
Germany has undeniably a great need for investment. However, the German Federal Government's German Fund is the wrong way to satisfy it.
The Federal Government wants to mobilise money from the private sector and sets up the "Germany Fund" for this purpose with 30 billion euros. Investments are to be directed in key areas such as energy and artificial intelligence.
The Federal Government has set up a fund with a volume of around 30 billion euros and wants to attract private investments.
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