The German chief of economy, chief Reiche, exhibits the roadmap to end the turbulence

Germany must take more risks and stimulate its stagnant economy with a decade of infrastructure investment, the German Minister of Economic Affairs and Energy said on Friday.

“The next decade will be the decade of investments in infrastructure in bridges, in energy infrastructure, in storage, in maritime infrastructure … Telecommunications. And for this, we need speed. We need speed and investment, and we need private capital,” said Reiche Annette Weisbach on the Togc Summit.

While 10% of investments could be taken care of with public funds, the remaining 90% counted in the private sector, she said.

The newly created Minister of Economy also addressed the regulations from Brussels, warning that it could cause investment and growth start-ups if it is too restrictive. Germany must have learned that investments include risks “and we have to be opened to take more risks,” she said.

The initiation of regulatory changes will in fact be one of the most important jobs for the new German government, Veronika Grimm, a member of the German Board of Economic Experts, told CNBC on the sidelines of the Tegernsee summit.

“It will be important to adjust the regulations, therefore delete or modify the stifling regulation of innovation so that more can be possible in many areas of technology,” she said in comments translated by CNBC.

“And then of course, it is a question of improving the environment or companies, which makes it more attractive so that we are again competitive,” said Grimm.

Germany’s economy has been slightly contracted on an annual basis in 2023 and 2024 and the gross quarterly domestic product has been overturning between growth and contraction for more than two years now, the success of a technical recession. Preliminary data for the first quarter of 2025 showed 0.2%expansion.

The forecasts do not suggest a lot of suspended from the slowness, the former German government last month, saying that it always expects the economy to stagnate this year.

“This country needs an economic turnaround. After two years of recessions, the previous government had to announce again [a] Year of zero growth for 2025 and we must really work there. Thus, at the top of the agenda, an investor booster, “said Minister of the Economy Reiche.

The reduction in energy prices, the stabilization of energy supply security and the reduction of bureaucracy was among the key points of the agenda, she added.

This is despite a major tax turnover announced earlier this year, which included changes in the country’s long-standing debt rules to allow additional defense expenses and a set of Euro infrastructure ($ 562.4 billion) ($ 562.4 billion).

Several of Germany’s key industries are under pressure. The automotive industry, for example, is faced with striking competition from China and is now faced with prices, while the problems of construction of houses and infrastructure have been linked to higher costs and bureaucratic obstacles.

Trade is also a key pillar for the German economy and therefore the uncertainty on the part of the changing tariff policies of American president Donald Trump weighs heavily on the prospects.