Germany Proposes €500 Billion Infrastructure Fund to Boost Long-Term Investments

The plan, backed by major parties, aims to modernize transport, energy, and education systems but faces hurdles including constitutional changes and funding allocation debates.

The proposed €500 billion infrastructure fund requires a constitutional amendment, needing a two-thirds majority in both the Bundestag and Bundesrat.
The fund would allocate €400 billion for federal infrastructure projects and €100 billion for state-level initiatives over the next decade.
Transportation infrastructure, including roads, railways, and waterways, is a key focus, with an estimated €220 billion needed by 2029.
The fund also aims to address critical needs in education, energy, and climate-related projects, such as expanding renewable energy and modernizing schools.
Critics question whether the allocated amount is sufficient and raise concerns about potential misuse to offset regular budget costs instead of new investments.

Frankfurter Allgemeine Zeitung