Overview

• Germany’s finance minister called the country’s current infrastructure “embarrassing” and demanded faster deployment of the special investment program.
• The coalition’s fund totals €500 billion for infrastructure and climate, with €100 billion allocated to the Länder.
• Klingbeil said an initial plan for states to pass 60% of their share to cities and towns was rejected by all Länder.
• He pledged to monitor how states use the money and to direct significant support to municipalities from the federal portion if necessary.
• He aims for party leaders to finalize around the turn of the year a 2027 budget package targeting about €34 billion in savings, with the SPD advocating higher taxes on the wealthy, including via inheritance tax.