Germany takes on new debt: Is the investment strategy enough?

Germany takes on new debt: Is the investment strategy enough?

With the aim of stimulating growth in Germany and mastering future challenges, the federal government is taking on new debt for a comprehensive investment offensive. This strategic decision was supported by a current study by the Center for European Politics (cep), which was carried out on behalf of the Federal Association of German Leasing Companies (BDL). According to the study, however, there is an acute need for reforms to strengthen Germany as an investment location.

The analysis highlights that the lack of a clear strategy, inefficient procedures and necessary structural reforms could jeopardize investment progress. In order to meet these challenges, the study names several success factors: the accuracy of investments, the efficient implementation of projects and the mobilization of private funds.

Investment areas and need for reform

The study identifies priority investment areas and determines the need for institutional reform to support a sustainable and targeted investment policy until 2030. A central theme is the need for innovative financing instruments such as leasing, which are also examined as part of the analysis. The diagnosis of the cep analysis is clear: Germany has provided too little capital in recent years and has often invested in the wrong places. This led to a significant investment backlog.

For the Federal Government, the pressure to act due to digitalization, the energy transition and the geopolitical risks that are shaping the global economy is enormous. These factors require courageous reforms and a realignment of investment policy in order to secure the country's competitiveness and create sustainable structures.

The challenges identified in the study not only shed light on the deficits of recent years, but also point to the urgency of acting now. Only through decisive measures can a sustainable and successful investment agenda for Germany and Europe be established.

Further information on the study and the specific proposals for the 2030 investment agenda can be found at verbaende.com and cep.eu.