The Federal Government has reportedly failed to meet its predefined targets for the special fund totaling 500 billion euros, which is designated for infrastructure and climate neutrality. This assessment comes from a 383-page monitoring report published by the Ministry of Finance, details of which were reported by the Handelsblatt.
While the ministry maintains that the initiative has seen an “overall successful start” the key indicators reveal considerably slower progress. For the past year, 37.2 billion euros was allocated in expenditures, but only 24 billion euros were actually disbursed. Furthermore, the ministries reported having reached only 26 out of 109 milestones planned for 2026 as of late May. This report marks the first time the Ministry of Finance is presenting a comprehensive balance for the special fund.
The Ministry introduces a progress and impact indicator to evaluate the achievement of the investment project goals. According to the report, the average value indicates a “partial achievement of goals” at 54 percent. The highest achievement rates are recorded for investments in hospitals and sports facilities, both clocking in at 90 percent. Following these are residential construction (66 percent), digitalization (57 percent), transport (52 percent), and energy infrastructure (45 percent). In contrast, no measurable progress has yet been noted for educational and childcare infrastructure.
Despite the initial difficulties, the Ministry of Finance anticipates that the fund will provide a noticeable growth impulse. The report estimates that, solely due to the expenditure from the special fund, the Gross Domestic Product (GDP) is currently approximately 0.5 percentage points higher than it would be without the fund. Even in the coming year, the GDP is projected to achieve at best stagnation without these special fund revenues.
