The municipalities are to decide on the use of the 500-billion-euro special fund for infrastructure and climate protection. The funds must be directed “to where they are needed for schools, roads and bridges” said the head of the German Association of Cities and Municipalities, André Berghegger, to the Funke-Mediengruppe newspapers (Wednesday editions).
“The decision on which projects will be tackled when and in what order must be made on the local level” Berghegger stated. The federal government must ensure that the funds “arrive in the municipalities as quickly as possible, free from bureaucracy and additional time and personnel expenses” he added.
The Bundestag had given the green light on Tuesday for the debt package agreed upon by the CDU/CSU, SPD and the Greens. In addition to an exception to the debt brake for security expenditures exceeding one percent of the gross domestic product, a special fund of 500 billion euros was created. The corresponding credits will also be exempt from the debt rule. The Greens had successfully pushed for the purpose of the funds to be changed from “for investments in infrastructure” to “for additional investments in infrastructure and for additional investments to achieve climate neutrality by 2045.”
One hundred billion euros will be made available to the states for investments and another 100 billion euros will flow into the climate and transformation fund. The special fund has a 12-year term. The supplementary nature of the special fund is to be ensured by first achieving an “appropriate investment ratio” in the regular federal budget.