Following the federal cabinet’s decision to implement the special infrastructure fund, the German Association of Towns and Cities (Deutscher Städtetag) has voiced sharp criticism regarding the absence of a fixed quota for municipalities. Christian Schuchardt, the association’s chief executive, told the “Rheinische Post” that the current approach “does not help the municipal level.
The removal of the initially planned minimum allocation of 60 percent of the funds for municipalities raises concerns about potential trade-offs with other projects that have already been financed or are slated for funding. Schuchardt expressed apprehension that the flexibility afforded by the revised plan could lead to a reduction in support for local infrastructure initiatives.
Instead, Schuchardt urged the federal states to allocate a significant portion of the special fund to their municipalities as additional investment capital. He argued that the allocation should reflect the level of public investment activity in cities and towns, which he stated exceeds 60 percent in all federal states and frequently surpasses 70 percent. “This regulation would be logical and fair” Schuchardt concluded.
