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Klingbeil Demands Faster Use of €500 Billion Fund as States Resist Municipal Share

He set a year-end target for a savings plan to plug a roughly €34 billion 2027 gap under heightened scrutiny of the fund’s accounting.

Overview

  • On ARD’s Caren Miosga, the finance minister called Germany’s infrastructure “embarrassing” and urged a rapid rollout that delivers visible improvements.
  • The special fund totals €500 billion for infrastructure and climate projects, with €100 billion allocated to the Länder for distribution.
  • Klingbeil said he sought to require that 60% of the Länder share flow to cities and towns but that the states blocked the provision.
  • He pledged federal oversight of how the money is used and promised that the federal share will directly support municipalities, alongside efforts to cut red tape and speed approvals.
  • He aims for party leaders to finalize around year’s end a package to close the 2027 budget gap of about €34 billion, while fending off economist critiques that the fund masks core-budget holes.