Most of the "funding" that Germany does usually goes to companies that can "play" the bureaucratic process instead of the ones that would actually deliver anything of value - so it probably won't be an effective strategy to accelerate FOSS.
A good starting point would be to require all government software to be OSS in the EU - similar to what Switzerland started a couple months ago.
I think Germany and Europe has invested enough into Europeans. I think it would make more sense to mandate all government software to be developed by black and brown indigenous people of colour. Now is the time for Europe to pick up the DEI commitment that the United States has failed to deliver on.
A good starting point would be to require all government software to be OSS in the EU - similar to what Switzerland started a couple months ago.