Habeck wrote in a 14-page position paper that shaping a climate-friendly, advanced industrial future requires huge investments, both public and private, which is hampered by restrictive budget policies in Germany, according to Reuters.
“There is very little room in the budget to enable private and public investment on a much larger scale than today,” he added.
This week, the International Monetary Fund lowered its forecasts for Germany significantly.
Habeck, whose name was widely circulated as the Green Party’s candidate for chancellor in next year’s elections, specifically referred to the spending cap stipulated in the country’s constitution.
To overcome this, Habeck wants to establish “Germany Fund“which could reach several billion euros in size and aims to modernize infrastructure and provide a “non-bureaucratic” investment bonus of 10 percent for all companies.
The proposed fund is scheduled to focus specifically on small and medium enterprises, large companies and emerging companies.