Overview
- Finance Minister Lars Klingbeil presented a €503 billion draft for the 2025 federal budget on July 8, but the summer break has deferred its approval until September.
- Since November 2024, provisional budget rules under interim management have blocked new project starts and led to widespread order shortages in the construction sector.
- The state-owned Autobahn GmbH has imposed an immediate tender stop for all 2025 road projects until additional federal funds are released.
- The Hauptverband der Deutschen Bauindustrie warned that 70 to 80 key infrastructure projects could have launched before recess and that bridge builders are already on short-time work.
- Germany’s special infrastructure and climate protection fund remains dormant pending further legislation in both the Bundestag and Bundesrat.