Germany to remove unnecessary hurdles for infrastructure investments

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Germany to remove unnecessary hurdles for infrastructure investments

According to sources, German finance minister Wolfgang Schäuble announced in mid September that he will check whether there are unnecessary regulatory hurdles that impede institutional investors to invest in infrastructure.

Transport minister Alexander Dobrindt also confirmed that he aims to increase public-private partnerships for public infrastructure.

The country's institutional investors welcomed the announcements, but with some reservations.

Klaus Stiefermann, managing director at the pension fund association aba, said in an interview to IPE that they would love to take on their share of responsibility for the further development of infrastructure, but only if it is in the interest of employees and employers.

Stiefermann agreed there should be more regulatory flexibility for pension funds with respect to institutional investment in infrastructure.

The German insurance association GDV also said it was willing and able to help the government finance infrastructure projects with the required security and sufficient returns for these investments.

Alexander Erdland, president at the GDV, argued that infrastructure should get its own regulatory risk category, to have more flexibility as well.

A survey by infrastructure specialist Yielco found that most German institutions don't plan to increase infrastructure investments at the moment.

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