The German Federal Ministry of Finance has rejected claims that the infrastructure special fund (SVIG) has been misused. In a technical memorandum circulated to the media, ministry official Armin Steinbach and his colleagues stated that the accusation is unfounded. The SVIG was created to finance projected infrastructure projects up to 2028 that total €176.9 billion. Of that amount, €172.5 billion represents additional spending that is justified not only by constitutional requirements but also from a fiscal‑policy standpoint.
Criticism came from the Munich Ifo Institute and the Institute of Economic Research (IW). According to the IW, 86 % of the SVIG money was allegedly diverted in the previous year; the Ifo reported an even higher figure of 95 %. Steinbach argues that those calculations are unreliable. He points out that the fiscal framework used for 2024 cannot be directly applied to 2025, and that the appropriate benchmark should be the coalition’s financial plan, not a comparison with the preceding year.
The ministry highlighted three main points to counter the critics’ allegations:
1. Without the SVIG, the 2025 investment budget would have dropped sharply, making the fund essential for maintaining projected spending levels.
2. The analysis from Ifo and IW ignores the significant structural changes to the federal budget caused by the exemption for security‑ and defence‑related expenditures, which have substantially increased overall core‑budget spending.
3. Evaluating borrowing on an annual basis is inappropriate for assessing the fund’s disbursement, because the SVIG operates across multiple fiscal years; unused investment resources may still be allocated in future years.
Taken together, the ministry maintains that the charge of “shifting” funds-at least for the federal portion of the SVIG-lacks merit.