The German construction industry is expressing concerns over a perceived lack of engagement from Chancellor Friedrich Merz, according to recent statements. Peter Hübner, President of the German Construction Industry Association, voiced the sentiment, noting that while the Chancellor appears to have an interest in construction matters, current political priorities seem heavily focused on foreign policy.
Hübner highlighted a broader issue, stating that the industry feels hampered by a lack of progress on domestic policy objectives. This concern extends beyond infrastructure projects and includes the critical area of housing construction. The association had anticipated swift action to revitalize the sector, but these changes have yet to materialize.
Carsten Burckhardt, Deputy Federal Chairman of IG BAU (a construction workers’ union), echoed this assessment, pointing to ongoing discussions with various government ministries. While Burckhardt noted a general willingness to engage and a degree of acceptance of the industry’s concerns, he emphasized the need for a significant shift in approach across government departments and wider society. When pressed to identify the primary obstacle to progress, Burckhardt indicated that bureaucratic processes and ingrained institutional practices were proving to be the most significant challenges.
Earlier criticism had focused on the implementation of the infrastructure special fund. Hübner alleged that the intended “additionality” – supplementary funding – was not being realized. Instead, he stated that investment funds were being redirected from the core budget for day-to-day expenses, while the regular budget was being reduced. The infrastructure fund is then used to fill this gap, a situation compounded by the Chancellor’s recent granting of greater autonomy to regional states regarding the utilization of their allocated €100 billion.
Hübner further warned that municipalities are facing depletion of resources, exacerbated by the removal of a stipulation that 60 percent of funding had to be newly allocated, a move which he believes will amplify municipal deficits expected to reach €35 billion in 2026. The industry’s representatives claim that instead of “additionality” they are encountering a system of budgetary “reallocation”.