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Eastern German Builders Warn States May Divert €100 Billion Infrastructure Fund

Industry leaders warn that disparate state execution methods coupled with reduced own-budget contributions threaten accountability, requiring tighter legal safeguards.

Overview

  • The Sondervermögen law earmarking €100 billion for infrastructure repairs remains under parliamentary review as states finalize varied implementation plans.
  • The Bauindustrieverband Ost reports that Saxony, Brandenburg and Saxony-Anhalt have lowered their own infrastructure budgets for 2025, raising fears of federal funds replacing regional spending.
  • States plan diverse execution mechanisms—dedicated funds in Saxony, supplementary budgets in Berlin and Brandenburg, and a special budget in Saxony-Anhalt—that could hinder federal oversight.
  • Robert Momberg and industry leaders are urging lawmakers to close legal loopholes in the Sondervermögen legislation to prevent state-level substitution of federal infrastructure funding.
  • The Bauindustrieverband Ost is also calling for streamlined planning and permitting processes to accelerate project approvals and ensure federal money boosts, rather than replaces, existing investments.