Will Germany’s immense infrastructure debt help the country’s energy transition?

After Germany amended its constitution in mid-March to allow for 500 bn EUR in debt for infrastructure and climate neutrality by 2045, as well as unlimited debt for defence spending, the new government has some room for manoeuvre. In these times of an economic downturn and a changeover in the international order, dilapidated infrastructure could receive a makeover, the economy could receive a growth stimulus, and Europe could gain greater independence from the US. But how will it affect the energy sector and, even more importantly, the country’s transition to a climate-neutral energy supply?

Reporting by Katharina Johannsen, Reporter, Montel News, Germany. Contributors: Daniel Hölder, Head of Global Policy & Markets, Baywa Re; Henning Gloystein, Practice Head Energy, Eurasia.

This video was first published on 8th April, 2025.