Special infrastructure fund: IT and digital economy calls for investment

The President of the German IT industry association Bitkom, Ralf Wintergerst, is calling on the future German government to provide 100 billion euros for a digital pact. The background to this is that the CDU/CSU and SPD have agreed in exploratory talks not only to relax the debt brake for defense spending enshrined in the German constitution, but also to create a special fund of 500 billion euros for infrastructure. Other representatives of the IT and digital economy are also advocating investment in their sector. They refer to Germany's economic future viability and digital sovereignty.

Bitkom calls for investment in AI and quantum computers

The Bitkom association believes that 20 percent of the special funds for the expansion of infrastructure should flow into the German digital economy over a period of five years and thus support the digital transformation of the economy and administration. Specifically, the association is calling for investment in artificial intelligence and quantum computers as well as the establishment of a "Germany stack" and points to Germany's role in global chip production. "Our goal must be to make Germany a digitally sovereign country," says Wintergerst.

The money for the digital pact should primarily come from federal funds from the special fund. For the digitalization of schools, the association proposes drawing on a portion of the funds earmarked for the federal states. They are responsible for education policy. However, Wintergerst also warns that the amount must be invested in such a way that long-term profits can be made from it so that the digital pact relieves the burden on future generations.

However, Verena Pausder, CEO of the German Startup Association, does not believe that the investments will drive the economy forward. Although a special fund creates financial leeway, "it is not designed to boost the economy." At the same time, the promotion of future technologies and digitalization supports the German economy.

Associations: Digital Ministry should distribute funds

The German AI Association and the Association of the Internet Industry (eco) did not name a specific sum, but also advocate high investment in the digital economy. "It is important that a significant proportion flows into digitalization," says eco CEO Oliver Süme. At the same time, the special fund alone is not enough. Structural changes are also needed, according to Daniel Abbou, Managing Director of the German AI Association. Specifically, both associations are calling for a reduction in bureaucracy, the simplification of application and approval procedures, as well as fewer reporting and notification obligations. This should primarily benefit small and medium-sized companies.

The telecommunications association Breko also doubted that a shower of money alone would advance the expansion of fiber optics. "As much state money as possible is not the answer to the 39% increase in construction costs since 2021 and will not lead to faster expansion." Competition-oriented and investment-friendly policies are needed, as well as a streamlining of lengthy approval procedures.

KI-Bundesverband and eco also called for the establishment of a digital ministry. It should manage funding, prioritize demand and make targeted investments in projects and companies. Similar opinions also come from the companies themselves. Deutsche Telekom CEO Tim Höttges, for example, spoke out in favor of a digital ministry.

The decision on the relaxation of the debt brake and the planned special infrastructure fund in the Bundestag is still pending; due to the complicated majority situation, this is still to be voted on by the old Bundestag. Even there, the CDU/CSU and SPD do not have the two-thirds majority required to amend the Basic Law. They therefore need votes from the Greens or the FDP.

(sfe)