Germany’s government is launching a “Germany Fund” designed to mobilise up to $152bn in private investment for higher-risk projects, according to a report by the Financial Times.

The initiative aims to support infrastructure, defence, energy, and technology investment.

The fund will be anchored by state development bank KfW and led by its chief executive, Stefan Wintels. It will be seeded with around $35bn in public capital and loan guarantees.

The initiative forms part of a broader effort by Chancellor Friedrich Merz’s government to revive Europe’s largest economy. Germany has struggled with stagnation, high energy costs, and intensifying global competition.

The fund will offer multiple vehicles to attract private capital into areas banks are often reluctant to finance. Officials said the goal was to amplify the impact of more than $1tn in planned public spending over the next decade.

People familiar with the discussions said private equity firms including KKR and Apollo have expressed interest in participating.

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