A mammoth economic stimulus passed last year in Germany was meant to jolt the country—and Europe—out of its economic slumber. The problem: Germans just aren't good at spending money.

Germany passed a roughly $584 billion infrastructure stimulus intended to revive its economy and boost Europe, but a year later much of the package remains unspent. The delay is attributed to strict fiscal safeguards, bureaucratic red tape and capacity constraints in construction and public investment, which are slowing project starts and limiting the expected boost to growth. For markets, slower deployment of fiscal stimulus implies weaker near-term demand in sectors tied to investment and infrastructure and could temper upside for European equities — particularly benchmarks exposed to the German economy such as Europe 50. Investors may reassess growth expectations for the region until spending accelerates or implementation barriers are removed.