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Bundesrat Clears €500 Billion Fund for Infrastructure and Climate Projects

Attention now turns to speedy project starts, clear distribution, visible delivery.

Overview

  • The upper house approved the law establishing the special fund, completing passage after the Bundestag voted in favor last week.
  • The package provides €500 billion over twelve years as additional investment for infrastructure renewal and climate-related measures.
  • Spending priorities include repairing bridges and rail lines, expanding energy infrastructure, and investing in digitalization, hospitals and housing.
  • Money will be channeled both to the Länder and into the federal Climate and Transformation Fund.
  • Reactions diverged, with Brandenburg’s Dietmar Woidke urging faster planning approvals while Bremen’s Björn Fecker criticized planned outlays for gas, and some Länder voiced dissatisfaction.