Monday, 21 July 2025
While the German government has announced plans to invest over half a trillion euros to modernize infrastructure, support digitalization, and meet climate targets, a new survey indicates significant skepticism among German businesses about the program’s implementation and impact.
The investment initiative, financed through a special credit-funded fund, includes an immediate investment program passed last week by both the Bundestag and the Bundesrat. Despite the scale of the effort, many companies remain doubtful that the measures will translate into tangible benefits for their own investment plans.
“Only a quarter of businesses believe that the federal government’s immediate program is feasible,” said Frank Liebold, Country Director Germany at credit insurer Atradius. He noted that while the program aims to stimulate growth and provide long-term planning security, many businesses question whether these goals will be achieved.
Atradius conducted a survey of over 480 companies across various sectors including automotive, construction, chemicals, services, finance, IT, and manufacturing. The survey revealed that nearly three-quarters of respondents see reducing bureaucracy in planning and approval processes as the most effective way to encourage investment. Other priorities include lowering corporate tax rates from 2028 (58 percent), reforms to reduce energy costs (52 percent), tax write-offs on equipment investments until 2027 (44 percent), and expansion of digital infrastructure (43 percent).
Fewer businesses believe that promoting electric mobility will significantly impact their investment plans, with only 15 percent citing it as a priority.
Businesses expressed a clear preference for the special fund’s resources to be allocated toward traditional infrastructure projects such as transport networks, digital expansion, housing construction, and education.
Despite the scale of planned investments, only about eight percent of companies surveyed consider the government’s measures fully sufficient to secure long-term economic growth. Nearly half remain undecided, while around one in five view the measures as inadequate.
Concerns also extend to the feasibility of implementing the program. More than 70 percent of respondents anticipate significant obstacles, citing delays in legislation and approvals as the primary challenges. Other issues include a shortage of skilled workers, unclear priorities, resistance from regional governments or civil society groups, and administrative complexity. Financial risks such as potential reallocation of funds or future budget cuts also contribute to the uncertainty felt by about a quarter of businesses.
Nevertheless, if implemented effectively, businesses see potential benefits. Two-thirds expect reduced bureaucratic hurdles, while 64 percent anticipate better investment conditions through tax reforms. Half of the companies surveyed expect improvements in the energy supply.
“Companies are willing to invest but require clear framework conditions and planning certainty,” said Liebold. “For the special fund to be effective, decision-making processes need to become significantly more efficient.” He added that the recent legislative steps, including extended depreciation options and proposed corporate tax reductions, are positive but must be accompanied by efforts to reduce bureaucracy and improve digital infrastructure to ensure timely execution of the stimulus measures.
The survey participants ranged from companies with annual turnovers of under five million euros to those exceeding one billion euros, employing anywhere from fewer than 100 to more than 1,500 people.
