Government set to boost funding to €110 million by 2025
The German federal government intends to escalate public investments to an estimated 110 billion euros by the year 2025, a significant surge from the 75 billion euros in 2024. This ambitious plan, spearheaded by Finance Minister Lars Klingbeil, is geared towards rejuvenating the economy and addressing long-standing investment gaps.
Klingbeil declared that the primary focus of these investments would be to stimulate economic growth and preserve existing jobs. He noted that these financial infusions would substantially benefit citizens, particularly those contributing to economic productivity.
The 110 billion euros will be sourced mainly from the core federal budget, with a keen emphasis on driving economic recovery and job security. The minister emphasized that these investments would yield tangible improvements for citizens.
Additional investments are expected from special assets, the Climate and Transformation Fund, and high investments from the special assets earmarked for infrastructure and climate protection. The government recently passed a 500-billion-euro package meant to support infrastructure and climate protection initiatives over a twelve-year period. This fund is primarily financed through credit, with supplements from revenues generated by emissions trading and national CO2 pricing.
The government has also pledged to undertake comprehensive structural reforms to address concerns about delays in project execution and to ensure the effectiveness of the special fund. Fiscal consolidation will continue, with a commitment to maintaining stringent budgetary discipline.
The federal government is currently finalizing the draft budget for 2025, which is slated for cabinet approval on June 25th. The government expects to invest a substantial portion of these funds in critical projects such as rail network renovation, bridge repairs, school refurbishments, and other essential facilities.
Sources: ntv.de, RTS.
The Finance Minister, Lars Klingbeil, announced that the bulk of these investments, totaling 110 billion euros, will be allocated towards community and employment policies, given their role in stimulating economic growth and preserving existing jobs. He further stated that these financial investments will considerably benefit the business sector, specifically those playing a significant role in economic productivity.
