In March 2025, Germany approved sweeping fiscal reforms, relaxing its debt brake and launching a EUR 500 billion fund to modernise infrastructure, boost defence, and drive the green transition.

The reform exempts defence spending above 1 per cent of GDP from fiscal limits and establishes a 12-year special fund for infrastructure and climate action. The fund will allocate:

  • EUR 100 billion to federal states
  • EUR 100 billion to climate-related projects via the Climate and Transformation Fund
  • EUR 300 billion to federal infrastructure investments

This initiative aims to strengthen defence capabilities, modernise infrastructure, accelerate the green transition, and stimulate long-term growth.

Opportunities for Swedish companies

Germany’s ambitious drive opens substantial prospects for Swedish companies in sectors where Swedish expertise is internationally recognised, from green technology and sustainable construction to digital infrastructure and advanced manufacturing. Our analysis highlights growth areas, sector trends, and practical entry points for companies seeking to expand in Europe’s largest economy.

How Business Sweden can help

We offer market intelligence, tailored recommendations, and hands-on support to help Swedish companies navigate Germany’s regulatory landscape, connect with key stakeholders, and position for long-term success. 

Contact Business Sweden to explore how we can support your growth and partnerships in the German market.