The German federal government has announced the launch of an ambitious investment fund called Deutschlandfonds, which aims to mobilize significant private funds for the development of strategically important sectors of the economy. The fund’s goal is to attract €100-130 billion in technology, defense, energy, and critical raw materials.
According to the plans of the coalition government, the state will initially contribute around €10 billion in guarantees and direct investments. This will attract 10 times more funds from private investors—venture capital funds, family offices, and international partners. The total volume of the fund is estimated at a minimum of €100 billion, with potential for growth through leverage.
The fund will be a hybrid instrument: a combination of government subsidies and market venture capital. It circumvents the restrictions of the debt brake, as investments are classified as financial transactions rather than direct borrowing.
Key investment areas:
Defense and security: Support for startups and growth companies in defense technologies.
Energy: Modernization of networks, development of renewable sources, hydrogen infrastructure, and heating systems.
Technology and innovation: Financing deep tech, AI, digital transformation, and critical materials.
Infrastructure: Closing financing gaps for medium-sized businesses and municipal projects.
The initiative is part of a broader package of measures to stimulate the economy after two years of stagnation. Earlier in 2025, a special €500 billion fund for infrastructure and climate neutrality was approved, and the Deutschlandfonds will complement it by focusing on attracting private capital.
Experts note that the fund could be a catalyst for European industrial revival and green technologies. The detailed structure and investment strategy are expected to be presented in the coming months, with operations possibly starting as early as 2026.
This is a step by Germany to strengthen its technological sovereignty and competitiveness amid global uncertainty.