KfW has expressed its approval of the new coalition agreement presented by the CDU, CSU, and SPD, which focuses on bolstering the social market economy and maintaining German and European climate targets. The agreement, which still requires the endorsement of party committees, has been recognized by KfW for its commitment to investment and innovation, aimed at enhancing Germany's competitiveness and contributing to improved living conditions.
Stefan Wintels, Chief Executive Officer of KfW, stated, "With its coalition agreement, the future German Federal Government has made a clear promise with respect to the social market economy and the German and European climate targets." Wintels emphasized the bank's role, noting, "We see extensive impetus for more investments and innovations that will make Germany more competitive, more confident and more secure within the European Union and contribute to improving people’s living conditions."
KfW plans to leverage its financial strength and domain expertise to support investments both domestically and internationally. "Wherever possible, we will actively provide support – in Germany as well as in international project and export finance and international financial cooperation,” added Wintels.
The coalition agreement identifies key areas such as SMEs, construction, housing, and education where KfW's involvement is proposed. It emphasizes economic competitiveness by advocating for initiatives such as establishing a Germany Fund and doubling investments in the WIN initiative. Other objectives include continuing the Future Fund beyond 2030 and optimizing SME support through KfW.
For private individuals, the agreement plans to streamline KfW’s housing funding programs and set up investment funds for housing construction. It also highlights adjusting the current heating act and improving the KfW Student Loan's conditions.
Regarding resilience at the German and European levels, the agreement proposes setting up an energy infrastructure investment fund, developing a defense and energy strategy, and promoting contracts for Financial Cooperation projects in favor of German and EU companies.
KfW intends to liaise with relevant departments following the coalition agreement's approval and the establishment of the new government. In the meantime, KfW's current promotional programs remain operational.
The current state of the German economy and the country's future preparedness is a topic KfW addresses in its position paper, "Managing the transition, strengthening growth," which assesses the present economic conditions and offers policy recommendations.