Billions in investments for Germany: hope or illusion?

Billions in investments for Germany: hope or illusion?

In a remarkable push to strengthen the German economy, 61 companies and investment firms are planning investments totaling 631 billion euros by 2028. This step was presented on July 21, 2025 during an investment summit at the Federal Chancellery led by Chancellor Friedrich Merz (CDU). The initiative called “Made for Germany” is intended to help repair and modernize the country’s ailing infrastructure. Key themes at this summit were the need for investment and the role the private sector should play in it.

The federal government has received the investment plans favorably. Chancellor Merz emphasized that the majority of investments must come from the private sector in order to achieve the ambitious goals. The proposed sum exceeds the €500 billion debt package for infrastructure investment announced by the government in March. Merz plans to organize regular meetings with companies to ensure rapid implementation of the measures provided for in the coalition agreement.

Criticism and supporters

Despite the positive reactions, there was also criticism. Jan van Aken, co-leader of the Left, expressed concerns about the relevance of large corporations for medium-sized businesses, while economic researcher Clemens Fuest called for the inclusion of smaller companies. He warned of possible “flash-in-the-pan investments” that could not be sustainable. Economists, on the other hand, support the planned investment boost, which is particularly necessary because of the ailing infrastructure. These include, for example, unstable bridges and an inadequate rail network.

The majority of economists view the use of debt to finance these initiatives as legitimate. This is in contrast to Christian Lindner's (FDP) earlier concerns about the debt brake. The influence of US President Donald Trump is also mentioned in this context.

A look into the future

Chancellor Merz will continue to keep an eye on companies and is planning the next meeting with the alliance for the end of 2025 or beginning of 2026. The targeted investment amount includes both planned and new capital investments as well as expenditure on research and development. Merz sees the investments as a sign of trust in Germany as a business location and the employees employed there.

Overall, the “Made for Germany” initiative shows the desire to secure Germany’s economic foundations in the long term and to take an important step towards solving the current infrastructure problems. Cooperation between the government and business could be crucial for the country's future development.

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