Special Fund: Only 24 Billion Euros Disbursed from 500 Billion

The special fund is divided into three blocks: 300 billion euros can be invested by the federal government, another 100 billion euros are available to federal states and municipalities, and 100 billion euros will flow into the Climate and Transformation Fund for climate protection. This division is intended to ensure that investments are possible at all levels – from federal policy to municipal infrastructure.

Three Pots, One Common Goal

The Federal Ministry of Finance has submitted a 380-page monitoring report to the Bundestag's Budget Committee, documenting the status of implementation. According to the report, a central 'progress and impact indicator' of the ministry achieves an average of 54 percent, which is classified as 'partial goal achievement'. For the year 2025, disbursements of 37.2 billion euros were actually planned from the federal share of the special fund, but only around 24 billion euros were spent.

According to the report, progress is being made in the renovation of bridges, tunnels, and railway lines, as well as in investments in housing construction. These areas are already benefiting noticeably from the additional funds. However, the necessary implementation laws for the special fund were only passed during the course of the year, meaning the fund is still in its initial phase.

Progress and Stagnation

From the perspective of the Ministry of Finance, progress is not fast enough in the digitalization of trains and railway lines, the nationwide expansion of broadband, and investments in research and development. Significant gaps remain in these areas compared to the original plans.

The so-called Infrastructure Future Act, a comprehensive reform package for faster planning and approval procedures, has been on hold in the Bundestag for months. The background is a coalition dispute over compensatory measures for natural areas. Without this law, the processing of many projects will remain slower than intended.

As of April 30 of this year, according to the monitoring report, only around 11.2 billion euros of the federal funds had actually been disbursed – out of a total of 39.7 billion euros planned in the federal budget. The Federal Ministry of Finance is now planning a bonus-malus system to create incentives for the swift and effective implementation of funds. This would allow funds from stalled projects to be redirected to other initiatives if necessary.

Criticism from the Court of Auditors

Sharp criticism of the current practice comes from the Federal Court of Auditors and economic research institutes. They complain that investments from the special fund are not being made additionally as promised, but are partly being used to close gaps in the core budget. This would mean the special fund would fail to achieve its intended effect.

A spokesperson for Federal Finance Minister Lars Klingbeil (SPD) stated in Berlin: "This report shows that we need speed." The Green Party's spokesperson for budget policy, Sebastian Schäfer, demanded: "The funds must finally flow consistently to where they are sustainable, investment-oriented, and effective in terms of climate policy." Thus, after the publication of the report, a broad political debate about the effectiveness of the special fund is emerging.

The importance of the special fund is particularly significant against the backdrop of a weak economy: the German economy is in a multi-year phase of weakness, and only minimal growth is expected this year due to the Iran war and increased gas and oil prices. According to the Ministry of Finance, the special fund contributes significantly to economic growth – all the more reason why the sluggish disbursement of funds is considered a political problem.

By 2045, Germany aims to achieve its climate protection goals while simultaneously renewing the country's infrastructure. Whether this will succeed at the planned pace with the special fund depends, according to the Ministry of Finance, on how quickly the necessary laws are passed and how consistently the additional funds are actually used for investments. The bonus-malus system and the political pressure following the monitoring report are now intended to accelerate the disbursement of funds.