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Germany’s €500 Billion Infrastructure Fund Triggers Budget Row and Delay Warnings

The finance minister has ordered a spending breakdown from the transport ministry to address warnings that the debt fund is replacing core investment.

Overview

  • Parliament has enacted a 12‑year, €500 billion debt‑financed special fund for infrastructure and climate, with initial allocations now published.
  • State transport ministers and the Autobahn GmbH report a roughly €15 billion funding gap for federal highways in 2026–2029, cautioning that up to 74 road projects may stall without higher future appropriations.
  • The Bundesrechnungshof urges constitutional review of some uses, flags interest costs rising toward about €62 billion a year, and joins Ifo and IW in criticizing shifts from the core budget and financing of social items like the Mütterrente.
  • In a letter reported by dpa, Finance Minister Lars Klingbeil reminded Transport Minister Patrick Schnieder of agreed spending limits, requested details on road project outlays and progress on the infrastructure acceleration law, and noted 166 billion earmarked for transport this term.
  • Political pressure is mounting as CDU social-wing chief Dennis Radtke rebukes Chancellor Friedrich Merz’s rhetoric as alarmist and a new INSA poll shows only 26% satisfied with the chancellor’s performance.