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IW Study Says Germany’s Infrastructure Fund Is Replacing Core Spending

Researchers argue the SVIK violates the pledge of additional investment, intensifying scrutiny of how the special fund is accounted for and governed.

Overview

  • The Institut der deutschen Wirtschaft reports that shifting projects into the SVIK creates roughly €10 billion of budgetary space in transport that the coalition need not save elsewhere.
  • For Deutsche Bahn, €18.8 billion are slated from the fund while rail investments in the core budget fall by €13.7 billion, leaving an estimated €8.2 billion of room after equity injections are excluded.
  • The study cites further substitutions including €2.5 billion from the fund for autobahn bridge repairs alongside a €1.7 billion cut to federal trunk road investments, broadband moved into the fund (€2.3 billion), and €6 billion for hospitals.
  • The Climate and Transformation Fund is set to receive €10 billion annually from the SVIK, and the IW says fund money also eases pressure from social payments such as the Mütterrente.
  • The critique follows earlier warnings from the Ifo Institute and the Federal Court of Auditors, as the Bundestag debates the Länder-und-Kommunal law for the €100 billion state‑municipal window with eligibility from €50,000 and approvals due by end‑2036 for funding through 2042.