Special Funds and Infrastructure in a Changing Geopolitical Environment

Special Funds and Infrastructure in a Changing Geopolitical Environment

The establishment of multi-billion-euro special funds marks a profound turning point in Germany’s infrastructure and fiscal policy. However, their effectiveness will be determined not by political announcements, but by their practical implementation.

In a recent webinar hosted by Kingstone, experts from the fields of law, investment and infrastructure explored how special funds should be positioned within the interplay of geopolitics, security requirements and investment practice – and why their impact will depend critically on the successful, structured mobilisation of private capital.

The discussion focused not only on fiscal aspects, but in particular on legal, regulatory and practical barriers to implementation. Karsten Mieth, Managing Partner at KINGSTONE Infrastructure Investments and former Spokesman of the Management Board at Encavis Group (listed in the MDAX until 2024), Dr. Manuel Indlekofer, LL.M. (Partner, Infrastructure, Construction and Transport in Europe at DLA Piper), and Maximilian Radert, LL.M., EMBA (KINGSTONE Real Estate) jointly assessed these issues from investor, market and strategic perspectives.

 

Key takeaways

Infrastructure is now part of the security architecture.
Special funds are no longer limited to driving economic modernisation; they are essential to strengthening resilience in areas such as energy supply, digital infrastructure, mobility and defence-related assets.

The key constraint is not capital, but investability.
While private capital is available, deployment is often hindered by a lack of viable project pipelines, limited standardisation, fragmented responsibilities, and complex procurement and approval processes.

Special funds require leverage to deliver impact.
Without the structured involvement of private capital – for example through PPP models, guarantee mechanisms or standardised investment platforms – public funding alone will fall short of meeting infrastructure needs.

Regulatory developments are necessary, but not sufficient.
Reforms to investment and regulatory frameworks open up new opportunities, but do not in themselves resolve the structural challenges of implementation.

Not all sectors are open to private investment – but many are.
Core military functions remain state-led, yet significant opportunities exist in energy, networks, charging infrastructure and defence-adjacent sectors.

A shift in perspective is needed: from individual projects to functioning markets.
International experience shows that sustainable infrastructure investment is achieved where markets are systematically developed, rather than through isolated projects.

This webinar provides a practical complement to the legal and policy debate on Germany’s special funds and highlights the key levers for successful delivery.

Watch the recording of the webinar “Germany’s New Infrastructure Agenda – Investing in a Changing Geopolitical Environment” here.