Germany's Infrastructure Modernization Could Trigger Significant Corporate Investment

A new study by the Handelsblatt Research Institute with PwC Germany and Strategy& finds that improving Germany's transport, energy, and digital infrastructure could unlock major private investment. 44% of surveyed companies would increase their investments in Germany if modernization succeeds, and 76% already say infrastructure quality heavily influences their investment decisions. The study, based on a survey of 304 executives from companies with over 100 employees, also highlights productivity gains as a key benefit, with 36% expecting higher productivity and 48% of those predicting gains of at least 6%. To realize these benefits, the study emphasizes better coordination of public and private investment, faster planning and approval processes, and integrated planning across sectors. The required capital is substantial, with needs of €60 billion for federal highways, €270 billion for rail, €70 billion for digital infrastructure, and €490-650 billion for energy transition over 20 years. A special infrastructure fund of €500 billion has been allocated, but the study suggests it may be insufficient to cover all needs.