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Germany’s 2025 Startup Push: Progress and Persistent Policy Gaps

Can Germany’s bold reforms truly transform its startup scene? The 2025 review reveals hard-won gains—and the hurdles still blocking growth.

In this picture it looks like a pamphlet of a company with an image of a cup on it.
In this picture it looks like a pamphlet of a company with an image of a cup on it.

Germany’s 2025 Startup Push: Progress and Persistent Policy Gaps

Germany’s federal government, led by a coalition of the CDU/CSU and SPD, took office in May 2025 with a clear mission: to strengthen the country’s economic competitiveness. A key part of this plan involves revamping policies for startups and scaleups, targeting areas like funding, bureaucracy, and innovation speed. Now, a new review assesses how far these efforts have come—and where gaps remain.

The coalition has laid out four main goals for its startup and scaleup strategy: reducing red tape, easing access to capital, developing talent, and fast-tracking innovations to market. These objectives align with broader efforts to connect digitalisation, research, and business growth.

The federal government’s focus on startups and scaleups reflects a broader push to modernise Germany’s economy. The 2025 review highlights both advances and lingering obstacles in the ecosystem. Future steps will depend on how well these policies address funding gaps, regulatory barriers, and the need for skilled talent.

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