A push for a greater share of the infrastructure special fund is being made by local authorities, who argue that the current draft of the federal government’s law does not go far enough. According to André Berghegger, the chief executive of the German Cities and Municipalities Association, it is essential that at least 75% of the funds be allocated to local governments.
The federal government has proposed allocating at least 60% of the 100 billion euros in the special fund to local infrastructure projects, but Berghegger claims this is not enough. “The draft law is significantly behind the realities of the municipalities” he said, adding that with an investment backlog of over 200 billion euros, local governments cannot be satisfied with just over half of the funds.
Berghegger emphasized that local governments are responsible for the majority of the country’s infrastructure, including schools, kindergartens, sports facilities and museums. He believes that the future of the country, good governance, social peace and public acceptance all depend on the quality of services and infrastructure provided by local authorities.
The chief executive stressed that the precarious financial situation of local governments must be taken into account when implementing the special fund of the federal government. While negotiations are ongoing over the 100 billion euros, Berghegger argued that the real issue is the ability of local governments to act and the trust in the state.