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German Coalition Plans €500 Billion Infrastructure Investment

The proposed package focuses on rail expansion, road upgrades, and easing the debt limit, but faces political resistance.

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Der Präsident des Bundes der Steuerzahler, Reiner Holznagel, plädiert für eine Änderung des Einkommenssteuersatzes Foto: picture alliance/dpa | Kay Nietfeld
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Overview

  • Germany's Union and SPD parties propose a €500 billion infrastructure fund, requiring a temporary relaxation of the debt brake.
  • Key priorities include rail network expansion, road and bridge repairs, and funding for the Berlin-Brandenburg i2030 transit project.
  • The SPD emphasizes improving rural connectivity and securing the Germany-wide public transit ticket (Deutschlandticket).
  • Opposition from the AfD and parts of the BSW coalition centers on concerns about new debt burdening future generations.
  • Political tensions persist, with calls for prioritizing high-impact investments and streamlining bureaucratic processes to accelerate projects.