Germany's new boss has a plan – and it starts with risk, speed and large bets

Germany must take more risks and increase its stagnating economy with a decade of investments in infrastructure, said the German Minister of Economic Affairs and Energy Katherina Reiche on Friday.

“The following decade will be the decade of infrastructure investments in bridges, in energy infrastructure, in storage, in maritime infrastructure … telecommunications. And for this we need speed. We need speed and investments, and we need private capital,” said Reiche Cnbcsee Weisbache.

Although 10% of the investments with public money could be provided, the remaining 90% relied on the private sector, she said.

The newly beaten Minister of Economy was also about regulations from Brussels, warning that companies could hinder investments and start-ups to grow if it is too restrictive. Germany has had to learn that investments entail risks “and we have to be a bit open to more risks,” she said.

“This country needs an economic change. After two years of recessions, the previous government had to announce again [a] Zero Groeijaar before 2025 and we really have to work on this. So at the top of the agenda is an investor booster, “the minister added.

Reducing energy prices, stabilizing the security of energy supply and reducing bureaucracy were among the most important points on the agenda, Reiche said.

The German economy has concluded a contract on an annual basis in both 2023 and 2024 and the quarterly gross domestic product has now been changed between growth and contraction for more than two years, just about to prevent a technical recession. Provisional data for the first quarter of 2025 showed an extension of 0.2%.

Predictions do not suggest much postponement of the slowness, with the now former German government last month that it still expects the economy to stagnate this year.

This despite a large tax U-turn that was announced earlier this year, including changes in the long-term debt rules to make extra defense expenditure and an infrastructure package of 500 billion-Euro ($ 562.4 billion) ($ 562.4 billion) possible.

Several of the most important industries in Germany are under pressure. The car industry, for example, has to deal with grim competition from China and is now confronted with rates, while problems in housing and infrastructure are linked to higher costs and bureaucratic obstacles.

Trade is also an important pillar for the German economy and that is why the uncertainty of the changing tariff policy of US President Donald Trump highlights the prospects.