The plan of the new German Minister of Economy and Energy: risk, speed and massive investments
The German Minister of Economy and Energy, Katherina Reiche, says that Germany has to take more risks and revive the economy stagnant through a decade of massive infrastructure investments.
Katherina Reiche. Photo Facebook Ministry of Economy and Energy
“The next ten years will be the decade of investments in infrastructure – in bridges, energy infrastructure, storage, maritime infrastructure and telecommunications. And for all we need speed. Speed and investments, plus Capital PrivaT ”, said Reiche for CNBC television, according to news.ro.
According to the German Minister of Economy, only 10% of these investments could be covered from public funds, the remaining 90% being dependent on the private sector.
Katherina Reiche also warned about the strict regulations from Brussels, which can inhibit the investments and development of startups.
The minister also says that Germany must accept that investments involve risks and be more open in this direction.
“It will be essential to change the regulations that break the innovation, so that it can be progressing again in many technological fields”Says, in turn, Veronika Grimm, a member of the German Council of Economic Experts, quoted by CNBC.
Grimm also said that another essential objective is to improve the business environment, so that Germany becomes competitive.
Risk of recession to Germany
Germany's economy was affected by a slight contraction in 2023 and 2024, and the quarterly GDP has oscillated between growth and decrease over two years, avoiding a technical recession. The first quarter of 2025 comes with a modest increase of 0.2%, according to preliminary data.
The former German government announced last month that the economy is expected to stagnate in 2025.
“This country needs an economic recovery. After two years of recession, the previous government was forced to announce a zero increase for 2025 again, and we have to act. Our priority is an incentive for investors,” Reiche said.
Among the main points in the agenda of the new ministry are the reduction of energy prices, ensuring stability in energy supply and reducing bureaucracy.
Temporary renunciation of strict rules on public debt
The strategy comes against the background of a major fiscal policy change announced at the beginning of the year, which includes temporary renunciation of strict public debt, to allow additional defense expenses and launch an investment package in infrastructure of 500 billion euros.
Several Bale key industries Germany are under pressure. The auto industry is facing hard competition from China and possible rates, while construction and infrastructure are affected by high costs and bureaucratic obstacles.
International trade is also threatened by the unpredictable commercial policies of US President Donald Trump, which increases uncertainties.
