The German construction industry is expressing a sense of being overlooked by Chancellor Friedrich Merz (CDU), according to recent statements. Peter Hübner, President of the German Construction Industry Association, noted that while Merz appeared to have an affinity for construction matters, the current focus seemed to be predominantly on foreign policy.
Hübner voiced concerns that the industry is facing an impasse on domestic policy matters, impacting both infrastructure development and residential construction. He suggested a swift implementation of solutions was anticipated but has not materialized.
Carsten Burckhardt, Deputy Federal Chairman of IG BAU, corroborated the sentiment, acknowledging ongoing discussions with various ministries where openness and acceptance were found. However, he emphasized the need for a substantial shift within government, bureaucracy and broader society to facilitate progress. When pressed to identify an impediment to advancement, Burckhardt pointed to entrenched bureaucratic processes as the primary hurdle.
Earlier criticisms targeted the implementation of the infrastructure special fund. Hübner specifically challenged the concept of “additionality” stating that investment funds previously allocated from the core budget are now being utilized for current expenditures while the regular budget experiences reductions. The special fund, intended to compensate, is being inadvertently utilized to cover these gaps, compounded by the recent allocation of substantial budgetary freedom to regional states.
He further warned that municipalities are likely to face financial shortfalls, exacerbated by the removal of a provision mandating the allocation of 60% of funding. This leaves them vulnerable given projected rising municipal budget deficits. Hübner summarized the situation as a “shifting station” within the budget, rather than actual supplemental investment.
