Ahead of major investment conference in Berlin, German economy minister warns

German Economy Minister Katharina Reiche warns in an interview with the Financial Times that support for the AfD party could deter investors, ahead of September elections. She outlines a plan to raise €3.75 trillion in private capital by 2040, alongside €1.9 trillion in public investment. The government expects up to 200 investors at a conference in Berlin, and global investors have expressed interest but fear the pace of reforms.

German Economy Minister Katharina Reiche gave an interview to the Financial Times and warned that support for the Alternative for Germany (AfD) party could deter investors, ahead of national elections in September in which the party could win in two states. The FT noted that the party is close to an absolute majority in Saxony-Anhalt. Reiche explained that the government of Friedrich Merz seeks to raise at least €3.75 trillion in private capital by 2040, in addition to about €1.9 trillion in public investment, while easing the 'debt brake' restrictions for investments in security, infrastructure, and energy. She described the opportunity as 'once in a lifetime' for investors in the Mittelstand. The government expects up to 200 investors at a conference in Berlin. Investors from the US, Canada, the Gulf, Singapore, and Japan have expressed interest but fear the progress of reforms, including pension reform, which has faced opposition from politicians in the CDU and SPD.