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Germany Redirects €3 Billion From Chip Funds for Shovel‑Ready Road Projects

Coalition leaders settled a funding dispute by prioritizing autobahns after a review cut the claimed gap to €4.7 billion.

Overview

  • The coalition approved an extra €3 billion for highways via the infrastructure special fund, drawing on money originally earmarked for semiconductor subsidies.
  • Chancellor Friedrich Merz vowed that all shovel‑ready projects will be built, with the immediate top‑up focused on roads rather than rail.
  • Transport Minister Patrick Schnieder had sought €15 billion through 2029; a roughly €1.7 billion gap remains for his road list to be covered through faster procedures and selective private financing.
  • The transport ministry has identified a €2.3 billion shortfall for shovel‑ready rail projects through 2029, and no new funding solution was announced.
  • Industry group ZVEI criticized the diversion of chip funds as harmful to Germany’s semiconductor strategy, while the government plans a two‑year check on whether the new package suffices.