Could the German infrastructure be the next hot investment?

The newly populated German government is looking forward to helping to save the country’s sick infrastructure.

Economy Minister Catherina Reish called for a cash injection earlier this month:

“We need speed and investments, and we need private capital,” CNBC told CNBC. “Of all the investments we will make, 10 % of them can be made with public funds, we need 90 % of private sector investments.”

Germany has become full of infrastructure issues after a long period of investment and restrictions that have been linked to the country’s financial rules, which leads to dilapidated bridges, broken train paths and limited digitization.

These issues are a top priority for the new government, according to the coalition agreement. Germany earlier this year devoted an infrastructure with 500 billion euros ($ 564 billion) from the private investment fund and climate in its constitution, as well as amending its financial rules that are scheduled to increase defense spending – both of which are widely seen as possible reinforcements of the right economy in the country.

“In general, there are definitely great opportunities in defense and infrastructure,” Greg Fawzi, the Economist in the euro area in JP Morgan, told CNBC.

It appears that enthusiasm for investment opportunities in Germany has become global, according to Stefan Winings, CEO of German Investment and Development Bank.

“There is a lot of attention … this year I was on the road in New York, London and Zurich. I notice and feel a lot of belonging to Germany. People want to invest in Germany,” CNBC told CNBC on the sidelines of the Tegernsee summit earlier this month.

Robin Winkler, chief German economist in Deutsche Bank, Al -Mashaer, told CNBC that recent political movements could lead to a wave of investment in the private sector.

“There was a remarkable receipt in the interest of investors in the German infrastructure,” he said, noting that filling in private capital would be very important for the government, “to get more uproar for the new private box.”

Winkler explained that her supreme plans in Berlin to significantly spend on the infrastructure are likely to be an attractive red strip for investors.

“In recent years, infrastructure projects have fallen in Germany because of excessive bureaucratic and organizational obstacles. There is now an ambitious plan to reduce these obstacles … We expect that these reforms will stimulate investment in private infrastructure,” Winkeler said. “

Berlin also indicated that the matter may take additional measures to stimulate private investment, as Economy Minister Reish CNBC tells that the government needs “to form programs and offer offers for the private sector to invest in our infrastructure.”

According to transportation and the organized environment, thousands of bridges around Germany need work And it requires Investments require a total of about 100 billion euros.

Elsewhere, Germany Train Company, Deutsche Ban, It is said She said that she would need about 150 billion euros by 2034 to modernize her current network, expand it and increase digitization.

Over a broader, a a report From the Colonia Institute of Economic Research as of May 2024, indicates that 600 billion will be necessary for 10 years to push the country forward on the infrastructure.