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Saarland Prepares August Talks on Project-Based Allocation of Federal Infrastructure Funds

The state awaits ratification by federal legislators of a reform to allow €95 million in fresh annual borrowing

Overview

  • Under the Bundesinfrastruktur-Sondervermögen Saarland will receive about €98 million annually for the next 12 years to modernize local infrastructure
  • The Finance Ministry will negotiate mid-August with municipal associations to divide the funds based on project success rather than fixed percentages
  • A cabinet-approved reform of the Sanierungshilfengesetz would permit Saarland to incur up to €95 million in new debt each year once federal legislators ratify the change
  • Saarland’s existing debt stands at roughly €17 billion, highlighting the challenge of funding investments within debt-brake constraints
  • From its €2.9 billion Transformationsfonds the state has approved €1.9 billion for 30 projects and disbursed €427 million toward digitalization, security, education and talent recruitment