Germany's investment gap with US up to 730 billion euros, Allianz study finds
Allianz Research puts Germany's gap with the US at up to 730 billion euros since 2019, while Globalfoundries plans a 1.5 billion euro expansion in Dresden from 2028.
A gap that has grown since 2019
According to a study by Allianz Research, Germany has built an investment gap of up to 730 billion euros against the United States since 2019. The study's headline gives 750 billion euros, while its text gives 730 billion as the upper figure. Allianz Research presents the same gap as one of the largest investment opportunities in Europe. The study was published on Friday, 16 October, and is due to appear at the 'Invest in Germany' government summit on Monday, 19 October. The authors argue that public spending alone cannot close the gap and that mobilising private capital is decisive for sustainable growth in energy, digital infrastructure, transport and defence.
Diverging investment trends
Between 2019 and 2025, investment in Germany fell by 6.4%. Over the same period it rose by 6.7% in the rest of the eurozone and by 20.2% in the United States. The study attributes the lag to high energy costs, the second-highest tax and levy burden within the OECD, excessive bureaucracy and high financing costs for companies. It frames these as the conditions that keep private capital away from investment at home.
- Germany
- -6.4 %
- Rest of eurozone
- 6.7 %
- United States
- 20.2 %
What the study recommends
Allianz chief economist Ludovic Subran set out what Germany needs to do to attract that capital.
To win this capital for investment, Germany must focus on four central prerequisites.
He named faster and simpler approval and procurement procedures, clear standards for public-private partnerships, reforms of old-age provision to strengthen long-term capital, and standardised investment structures. The study also estimates that about 450 billion euros could be mobilised if only 5% of the nine trillion euros held by German households in financial assets were shifted into productive investment. A state-subsidised private pension depot, due to start in January 2027, could become a catalyst for a new investment culture. The energy transition alone requires around 1.3 trillion euros until 2045, and digital infrastructure up to 500 billion euros until 2030.
Private capital and Allianz's own role
Allianz board member Andreas Wimmer described the country's appeal to investors in direct terms.
Germany is an extremely attractive location for investors: industrial strength, stable institutions, scalability, cutting-edge research and highly qualified skilled workers.
Wimmer added that the investment gap built up in past years shows that investment does not follow from potential alone. Allianz says it invests around 100 billion euros in Germany, which it states corresponds to 12% of its global investment portfolio.
Globalfoundries expands in Dresden
Globalfoundries plans to expand its Dresden plant from 2028 for 1.5 billion euros, according to site manager Manfred Horstmann, who announced the plan at a customer event of the chipmaker in Munich. The company is already expanding the site for 1.1 billion euros, of which the state covers just under half. The topping-out ceremony for that project took place on Friday, 9 October, and series production in the new cleanrooms is due to begin in 2027. Horstmann said further investments are expected over the next decade but gave no details. Chip output is to grow by a good 70% compared with current levels. The plant, which has 3,000 employees, is already the largest site of a contract chip manufacturer in Europe, producing specialised semiconductors for other chip companies.
We have been at the limit for years.
Horstmann said the factory is fully utilised. Lars Reger, chief technology officer of the Dutch chip supplier NXP, said in Munich that new capacity is urgently needed.
- Globalfoundries holds the topping-out ceremony for its current Dresden expansion
- Allianz study due to appear at the Invest in Germany government summit
- Series production to start in the new Dresden cleanrooms
- Planned start of the state-backed private pension depot
- Next phase of the Dresden expansion, costing 1.5 billion euros, could start
