Germany, Europe’s largest economy, prepares to issue stimulus checks this month
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Europe’s largest economy, Germany, is launching stimulus checks this month, backed by a sweeping financial package that rewrites old spending laws and dumps hundreds of billions of euros into tech, manufacturing, energy, and transport. This comes after a major fiscal reversal locked into the country’s constitution last month. The plan includes a 500 billion euro fund (roughly $548 billion) focused on climate and infrastructure projects, according to a report from CNBC. Alongside that, Germany’s coalition agreement outlines another 100 billion euros aimed at economic growth, business tax reforms, and taming rising energy prices. Berlin pushes cash into tech, energy, and industry Deutsche Bank analysts, led by Maximilian Uleer, broke down exactly who’s set to benefit. The bank named top companies expected to gain as money flows from Berlin to German sectors tied to digitization, infrastructure, and industrial projects. In a Tuesday note, Uleer wrote, “Now the question is how investors can participate in this deal and ride along the stimulus wave for the German economy.” Tech firms are first in line. Uleer’s team pointed to increased digitization spending as a key part of the upcoming checks. CNBC said one firm expected to get a big lift is Bechtle, a German IT services company with deep ties to the public sector. Lars Vom-Cleff, one of Deutsche’s research analysts, said, “Business with the public sector accounts for ~40% of revenue and the company generates ~60% of revenue in its home market, hence should benefit significantly from the money earmarked to be spent on digitization in Germany.” Deutsche Bank set Bechtle’s price target at 48 euros, projecting a 37% upside. The bank also mentioned Cancom, which is Germany’s sixth-largest independent IT firm. Public sector clients make up 35% of its revenue, and 65% of its earnings come from inside Germany, according to Vom-Cleff’s note.…
Filed under: News - @ April 16, 2025 5:21 pm