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Germany Launches Hightech Agenda With €18 Billion Budget, Fusion Push and Chip Strategy

Leaders stressed faster commercialization with greater data use to meet global competition, countering skepticism over funding scale.

Overview

  • At a Berlin launch, Chancellor Friedrich Merz framed the plan as a bid for technological sovereignty and set a joint public‑private R&D goal of at least 3.5% of GDP by 2030.
  • The government unveiled an Action Plan for Fusion with more than €2 billion for research through 2029 and the ambition to build the world’s first fusion power plant in Germany.
  • A new microelectronics strategy seeks to secure Germany’s position as Europe’s leading semiconductor hub, as GlobalFoundries announced a €1.1 billion expansion in Dresden and Merz voiced optimism on EU state‑aid approval.
  • Officials called for less fixation on data protection and more on data use, faster regulatory processes, and deeper venture capital pools, with the EU’s planned Scaleup Europe fund still lacking a German anchor investor.
  • Industry voices and opposition critics welcomed the focus but questioned whether funding and implementation speed are sufficient, noting limited detail on roadmaps and the central role of private investment.