Germany sets up $35.2B fund to stimulate private investments

Deutschlandfonds to support industrial, small and medium enterprises working on reducing carbon emissions, energy suppliers, and high-tech and defense companies

By Bahattin Gonultas

BERLIN (AA) - Germany launched on Thursday a 30 billion euro ($35.2 billion) fund the Deutschlandfonds to boost competitiveness via private investments in ‌energy transition, technology and industrial modernization projects.

The fund was announced by Finance Minister Lars Klingbeil, Economic Affairs and Energy Minister Katherina Reiche, and public bank KfW’s CEO Stefan Wintels.

The initiative is a result of Germany’s efforts to regain its competitive edge after years of stagnation. It will enable the country to rely on guarantees and loans to reduce the risk for private investors and equity investments, instead of dipping into direct public spending.

The Deutschlandfonds will be managed by KfW, and aims to attract an additional investment of 130 billion euros ($152.6 billion).

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