Germany's Habeck lays out plan to boost economy, calls for investment fund

23/10/2024 17:38

        German Economy Minister Robert Habeck wants to remedy weak growth in Europe's largest economy with a debt-financed investment fund and change course on its budget policy, according to a 14-page position paper released on Wednesday.
        
        Creating a climate-neutral modern industrial future requires massive investment, both public and private, which is being held back by Germany's restrictive budgetary policy, said the paper.
        
        The International Monetary Fund (IMF) this week significantly downgraded its forecasts for Germany. No other major industrialized country is currently weakening as much.
        
        To remedy this, Habeck wants to introduce a multibillion-euro "Germany Fund" to modernise infrastructure and provide an "unbureaucratic" investment premium of 10% for all companies.
        
        The proposed fund would focus in particular on small and medium-sized enterprises, large corporations and start-ups.