CDU Economic Council Urges Mobilization of Private Capital Amid Concerns Over Investment Strategy

Thu 28th Aug, 2025

The CDU Economic Council has raised concerns regarding the recent legislation pertaining to the EUR500 billion special fund, emphasizing the need for enhanced private investment measures. The organization is pressing the Finance Minister to implement strategies that will attract more private capital into the economy.

Currently, the legislation is progressing through the parliamentary process, having recently included expert testimonies during committee discussions. However, the Economic Council contends that the proposed measures lack concrete initiatives aimed at mobilizing private investment, which they believe is critical to achieving the fund's intended growth effects.

According to the Economic Council's Secretary General, this omission undermines the government's commitment to avoiding a long-term, debt-financed state economy. The Council suggests that the involvement of private partners is essential for a credible and effective infrastructure initiative. They are calling for amendments that would introduce instruments such as guarantees and bonds into the legislation.

The Federal Ministry of Finance has responded to these criticisms by highlighting their current focus on traditional infrastructure projects, which they assert are designed to indirectly stimulate private investment. They argue that state investments in public infrastructure will enhance overall conditions for businesses, making it more appealing for them to establish new operations.

A spokesperson from the Ministry noted that while the special fund allocates EUR300 billion from the federal portion, only a fraction of project financing will be sourced from the government, thereby creating an opportunity to leverage additional private capital. Furthermore, the Ministry is pointing to other initiatives, such as the recently approved growth booster, which aims to broaden tax deductions for investments and reduce corporate tax rates by 2028.

Additionally, the Germany Fund is highlighted as a strategic tool that aims to mobilize at least EUR10 billion in federal equity through guarantees and financial transactions, with the objective of attracting further private investment.

As the conversation around the special fund continues, stakeholders are keeping a close eye on how the government addresses the need for private capital involvement in the broader investment strategy, which is deemed essential for sustainable economic growth.


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