Martin Blessing, the Chancellor’s Investment Commissioner, has called for the German government to significantly increase the involvement of private investment in its infrastructure initiatives. Speaking to the “Handelsblatt”, he stated that the public sector’s willingness to bring private financiers onboard is still underdeveloped, expressing a wish for greater dynamic in this area. Currently, Germany is struggling to adequately leverage state capital with private capital, and Blessing stressed that the federal government must utilize public-private partnerships much more strongly, especially for infrastructure projects.
Blessing conceded that the initial burst of investor enthusiasm, which followed the formation of the new government and the presentation of a large investment package, has somewhat faded. “A certain degree of disillusionment has set in, which I do not want to deny,” he remarked. He identified pension reform as a crucial change required to attract more capital into the country, calling it a “litmus test.” By strengthening the capital-funded pension system, Germany could establish a robust pension capital market that drives corporate growth, ultimately making the country’s location more compatible with and attractive to international capital.
Furthermore, Blessing urged that the health care reform be readjusted because several pharmaceutical companies have withdrawn investments in response to the changes. He suggested that policies should better treat pharma companies that conduct research or manufacturing in Germany compared to those that merely sell products only in the country. Instead of issuing threats, he advocated for constructive dialogue. He emphasized the importance of Germany remaining a top player in the pharmaceutical sector, particularly in the fields of research and development.
