In order to encourage companies and investors to invest more, the Federal Government started a so-called Germany Fund. Various instruments are bundled under the name, with which, for example, investments are secured through state guarantees. So it’s not a classic investment fund, but rather a platform with different tools depending on the industry and type of investment.
The fund is intended to increase risk appetite and motivate companies to invest money in future technologies. It is intended for industry and medium-sized businesses, energy companies or tech start-ups. The government has in mind investments in renewable energies, battery storage, geothermal energy, the extraction of lithium or new defense projects.
The step was announced in the coalition agreement between the Union and the SPD. The fund is intended as a supplement to the state’s special funds. The Federal Ministry of Finance, the Federal Ministry of Economics and the development bank KfW are involved. The government is providing guarantees totaling 30 billion euros. The federal government hopes to trigger investments of around 130 billion euros.
This article will continue to be updated.
