With the publication of the new coalition agreement in April 2025, Germany’s new government has sent a clear signal: it is ready to reshape the rules governing international trade and investment. While the coalition agreement itself is not legally binding, it outlines concrete policy goals that will guide legislation throughout the current term.
A key focus is the reform of the Foreign Trade and Payments Act (Außenwirtschaftsgesetz). The government has announced two clear priorities:
- Accelerated review procedures
- Enhanced protection of national security interests
Investment screening is set to become more targeted, focusing on critical infrastructure. At the same time, export licensing processes will be simplified—shifting from blanket checks to risk-based audits. This marks a paradigm shift: less bureaucracy, but greater responsibility for businesses.
The reform underscores a growing trend: economic security and geopolitics are becoming inseparable. Cybersecurity, supply chain resilience, and control over sensitive technologies will play an increasingly central role in investment decisions and regulatory oversight.
What does this mean for your business?
- If you’re involved in M&A, tech, infrastructure, or international partnerships, expect enhanced due diligence obligations.
- Compliance systems will need to adapt—especially in light of stricter reporting and liability risks.
- Early strategic advice is essential to turn these regulatory shifts into competitive advantages.
Germany’s new approach offers major opportunities for agile global companies—especially SMEs looking to expand their presence in the EU’s largest economy.Reach out to our experts Dr. Anna Tönies-Bambalska [Link to profile] and Ulrich Baumann [Link to profile] to discuss how your organization can navigate these changes effectively.