Special Fund: Billions Flowing Slower Than Planned

The Ministry of Finance has developed a central progress and impact indicator, which shows an average target achievement of 54 percent. This indicates only a partial fulfillment of the set goals.

Despite initial difficulties, the Ministry of Finance expects a noticeable growth impulse from the special fund. The German economy has been in a phase of weakness for years, and due to the Iran war as well as price increases for gas and oil, only minimal growth is expected this year, which will be partially supported by the special fund.

500 Billion for Twelve Years

Last year, the Bundestag and Bundesrat approved additional loans totaling 500 billion euros for a special fund to modernize infrastructure and for climate protection goals until 2045. The program, planned for twelve years, is divided into 300 billion euros for federal investments, 100 billion euros for states and municipalities, and 100 billion euros for the Climate and Transformation Fund.

According to the report, progress has been made in the renovation of bridges, tunnels, and railway lines, as well as in investments in housing construction. In contrast, the digitalization of trains and railway lines, the nationwide broadband expansion, and investments in research and development are not progressing fast enough.

Where It's Stalling: Digitalization and Broadband

A key legislative project, the Infrastructure Future Act, has been stalled in the Bundestag for months. The reason is coalition disputes over compensatory measures for natural areas.

As of the reporting date of April 30, only about 11.2 billion euros of the 39.7 billion euros in federal funds planned for the entire year had been disbursed. The necessary implementation laws for the special fund were only passed during the course of the year, and the funds can be budgeted across fiscal years.

Bonus-Malus System as an Incentive

The Federal Ministry of Finance plans a bonus-malus system to promote the rapid and effective use of special fund resources. This would allow funds from stalled projects to be reallocated to others.

The Federal Court of Auditors and economic institutes have criticized that the investments from the special fund are not additional as promised, but are being used to plug holes in the core budget. The Ministry of Finance rejects this criticism and denies that the special fund serves as a transfer station for budget deficits.

Criticism from the Court of Auditors and Opposition

A spokesperson for Lars Klingbeil (SPD) stated in Berlin: "This report shows that we need speed." The funds must quickly reach the citizens.

The Green Party's budget policy spokesperson, Sebastian Schäfer, said: "The funds must finally flow consistently to where they are sustainable, investive, and politically effective for the climate." The federal government must urgently take corrective action.

The special fund is intended to resolve a years-long investment backlog in Germany. However, the balance to date shows a significant gap between claims and reality.

The federal government emphasizes that many projects require long lead times and that the impact of the special fund will only fully materialize in the coming years. The cross-year budgeting allows for uncalled funds to be carried over to later fiscal years.