The outgoing president of the Federal Court of Auditors, Kay Scheller, has sharply criticized the German federal government for its treatment of the €500‑billion special fund “Infrastructure and Climate Neutrality”. Leading German economic institutes argue that 80 to 90 percent of the money is being used to plug fiscal holes rather than to finance new infrastructure projects. Scheller told the Süddeutsche Zeitung, “Exactly a year ago we warned about this. We are seeing a shifting house in this case”.
He added that a similar pattern exists with the €100‑billion programme for the states. “That programme was launched without an additionality clause, so the risk is that the funds will be diverted to existing programmes or indirectly to consumption, contrary to the original goal of financing new investment”.
Scheller, who will retire at the end of May after 14 years at the head of the Court of Auditors, criticized the federal budget policy as a whole. “Debt is rising exponentially. In the current budget, almost half of the money goes to interest, defence, and pensions” he said. “Numerous legal obligations further squeeze the space for new initiatives. About 90 percent of the budget is already earmarked; only roughly ten percent is truly flexible”. According to the jurist, this “brittle” budget structure leaves the government with no option but to turn to new loans during crises, because the high revenues alone are insufficient to meet spending demands.
Scheller also pointed out that the state is losing substantial sums to tax fraud, undeclared work, and money laundering. “We are talking about enormous amounts. The government estimates that up to €100 billion a year could go undiscovered in money‑laundering activities” he said. “The state must enforce its claims consistently. Suspects should also face the burden of proof to demonstrate the source of their money”.
