Germany to Put Billion Euros into New EU Scale-Up Fund

February 2022

Germany and France have signed a declaration together with 16 EU countries to create a EUR 10 billion European Tech Champion Initiative (ETCI). The bloc’s two largest economies say that they will contribute one billion euros each to the new fund, which will also be supported by other large members including Italy, Spain and the Netherlands.

The declaration identifies the “lack of European financing” as a problem that “is slowing the growth not only of our startups and tech ecosystem across Europe, but also of the European economy as a whole.” The ETCI will be administered by European Investment Fund and aims to create “10 to 20 pan-European funds of over EUR 1 billion each.”

“Together with our European partners we will leverage public funds to attract more private capital into this sector, especially at the stage when start-ups mature, and hereby strengthen the innovative potential of Europe’s venture capital ecosystem,” said German Finance Minister Christian Lindner in a statement.

“We are sending an important signal today,” added Robert Habeck, German Minister for Economic Affairs and Climate Action. “We want our innovative start-ups to have the opportunities to grow – from their EU home base – into global market leaders.”

German Finance Minister Lindner (left) and French Economic and Finance Minister Le Maire signing the declaration © BMF