Overview

• The Bundesrechnungshof labeled the draft law for channeling €100 billion to Länder and municipalities “substanzlos,” citing missing additionality rules, success controls and federal recoupment powers, as well as the dropped municipal quota.
• The Ifo-Institut reported that planned federal investments are being moved from the core budget into the Sondervermögen rather than adding to them, noting investment lines falling to €37.5 billion versus €53.4 billion in the prior draft.
• Brandenburg outlined roughly €3 billion in projects, including about €1.5 billion for municipal infrastructure and €460 million for hospital reform, with early measures already identified for this and next year.
• In Saxony, an internal allocation plan reserves 10% of annual tranches for a state-controlled pot that could fund items such as an Olympic bid, drawing criticism from municipalities expecting more direct support.
• Amid the scrutiny, the Finance Ministry has set up an oversight advisory board led by Harald Christ, and Bundestag deliberations on possible revisions to the implementing law are underway.