In March, Germany took center stage of the infrastructure agenda by overhauling the country’s fiscal rules, signaling major implications for infrastructure investment.

Germany’s incoming chancellor pushed through constitutional changes at the end of March that culminated in the creation of a €500 billion ($548 billion) infrastructure fund as part of a broader €1 trillion ($1.1 trillion) fiscal policy move. The planned fiscal changes mark an unprecedented shift to Germany’s doctrine of low borrowing, aimed at revitalizing growth in Europe’s largest economy.

Supporting European growth

To put this into perspective, the planned €1 trillion ($1.1 trillion) fiscal policy push accounts for approximately 20 percent of German’s annual GDP. The reform is anticipated to enhance Germany’s economic output significantly and contribute to improving the European Union’s output given its pivotal role in the region’s economy, as the country