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yesterday

Germany Plans 50% Jump in 2025 Investments as Coalition Divides Over €500 Billion Fund

Greens warn the plan could divert resources from climate and infrastructure projects into routine spending.

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Bundesfinanzminister Lars Klingbeil (SPD) könnte sich mit einem Haushaltstrick neue Spielräume verschaffen.
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Overview

  • Finance Minister Lars Klingbeil announced almost €110 billion in investments for 2025, up nearly 50% from last year by tapping the €500 billion special fund.
  • The special fund, agreed by Union and SPD for infrastructure and climate measures over 12 years, is being used to reclassify existing projects and free budget space.
  • Green Party vice chairman Andreas Audretsch accused the government of orchestrating a “massive reallocation” that could release up to €50 billion for non-investment purposes.
  • The Climate and Transformation Fund faces funding gaps and lower revenues, leaving only half of its planned €50 billion through 2029 available for new projects.
  • CDU/CSU members are split between welcoming extra fiscal flexibility and fearing breaches of previous commitments as Klingbeil pushes budget drafts through cabinet ahead of summer recess.