Following the victory of the Left party in Berlin, the German investment and private equity sectors fear a significant capital flight from the country. Ulrike Hinrichs, the CEO of the Federal Association of German Venture Capital Companies, told the “Bild-Zeitung” that capital does not have a permanent residence; consequently, “anyone who drives investors away will see their money located elsewhere.”
Hinrichs stresses that the current debate surrounding nationalization is “pure poison for Germany’s location.” She argued that it is deeply contradictory to speak of expropriation while simultaneously courting private investment. Given the global market, investors have many international options, including Berlin, Paris, London, or the USA.
“Capital is cautious-and above all, quick,” Hinrichs added. She warned that investment decisions can be reversed overnight. In this volatile scenario, she cautioned that frightening private investors away is essentially “playing with fire.”
