Draft law does not specify sectors for planned German infrastructure fund

First draft proposals for changes to the constitution to introduce a special fund for up to 500 billion euros worth of infrastructure investments in Germany does not specify any sectors for which the money would be used, reported Table Media. Details on the fund will be laid down in a separate federal law. The draft can still be changed during negotiations with other political camps next week such as the Greens, whose support is needed for the required two-thirds majority to pass the plans in parliament.

However, the accommodating explanations for why the fund is necessary in the proposal by the conservative CDU/CSU alliance and the SPD parliamentary groups mention that research reports had shown “that additional investment in infrastructure is required, including in the areas of decarbonisation, transport and education”.

Germany’s likely next coalition government parties proposed an overhaul of state debt rules to make hundreds of billions of euros available for defence and infrastructure investments. The agreement marked the first major deal in the coalition talks between the conservative CDU/CSU alliance of chancellor candidate Friedrich Merz and the SPD, but requires further negotiations with the Green Party.  Details regarding what the infrastructure funding would be used for have so far been sorely lacking. The Green Party, as well as NGOs, have called for clarity that climate action and the transition to a sustainable economy will benefit from the fund.

The soon-to-be-government parties now have two weeks to get the changes through parliament before it meets for the first time in its new configuration (25 March), where the majorities have shifted and the Left Party’s support would additionally be necessary. Parliament is set to debate the proposals on 13 March and make a decision on 18 March, reported news agency dpa.

Most Germans are in favour of more state spending on defence (66%) and infrastructure (78%), showed a survey commissioned by public broadcaster ARD. And 59 percent agreed that Germany should take on new debt to fund the spending.

The decision to make the constitutional changes while the outgoing parliamentary majority is still in power could be challenged in court, as voters have already elected new majorities. Former constitutional court president Hans-Jürgen Papier told German news service Funke Mediengruppe that he did not see an issue because the legislative period only ended once the new parliament had its first constitutional session. “Whether this is politically justifiable and how it will be received by the electorate is another matter,” he said.