Germany’s new government, led by Christian Democratic chancellor Friedrich Merz, surprised investors at home and abroad earlier this year with its determination to invest some €500 billion into improving Germany’s defence and infrastructure, as well as fostering digitalisation.

In terms of healthcare, the government will not be starting from scratch. Important changes have already been initiated over the past three years, mainly in the form of the so-called hospital reforms, under the previous government, with an implementation deadline of 1 January 2027.

Building on this, there will be a €50 billion transformation fund to restructure the hospital system. The fund will target increased specialisation and the maintenance of essential hospitals in rural areas. This will involve consolidating the hospital landscape, boosting outpatient structures and fostering cooperation between clinics and outpatient services. The ultimate aim is to provide better, and more cost