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Germany Launch €18 Billion Plan to Drive Innovation and Lead in Clean Technology

Prime Highlights:

  • Germany has launched a €18 billion High-Tech Agenda to strengthen its leadership in advanced technologies and clean energy.
  • The plan aims to boost innovation, economic growth, and Europe’s technological independence.

Key Facts:

  • The strategy focuses on six main sectors: quantum technology, biotechnology, microelectronics, nuclear fusion, climate-neutral energy, and sustainable transport.
  • Funding will come from multiple sources, including €2 billion per year from the Federal Ministry of Research and €10 billion from climate and infrastructure funds, running through 2029.

Background:

Germany has launched a €18 billion High-Tech Agenda to boost its progress in key areas such as quantum technology, biotechnology, microchips, nuclear fusion and clean transport.

Chancellor Friedrich Merz formally announced the plan at a ceremony in Berlin on October 29, emphasizing that innovation is vital to Germany’s economic revival and long-term security. “If we fail to turn our scientific potential into real-world innovation, we risk not only our prosperity but also the security and freedom we have enjoyed for decades,” Merz warned.

The agenda underscores Germany’s drive for “technological sovereignty,” aligning closely with the European Union’s broader innovation and industrial strategy. Merz, quoting Nobel Prize-winning economist Philippe Aghion, said Europe should not let the US and China control the future of technology.

The plan sets clear goals and timelines for each of the six main sectors and links research funding to real progress and results.

Funding for the plan will be drawn from multiple sources, including €2 billion annually from the Ministry of Research, Technology and Space, and about €10 billion from special climate and infrastructure funds, part of Germany’s new €500 billion federal investment package.

Among early projects, Germany will establish robotics training and testing centers, expand AI use in healthcare and pharmaceuticals, and launch a research satellite for quantum communication before the end of the year.

Germany’s plan seeks to grow the economy, stay competitive, and strengthen Europe’s drive for digital progress and innovation.