Studies: Special funds hardly flow into infrastructure and climate protection

Two economic research institutes have drawn an interim conclusion regarding the use of funds from the special fund for infrastructure and climate neutrality. Only a very small portion is actually being used for these purposes. The construction industry is disappointed.

A year ago Bundestag and Federal Council The special fund for infrastructure and climate neutrality (SVIK) was approved. It is a €500 billion borrowing authorization to be made available in addition to investments in the core budget. €300 billion was earmarked for federal investments, €100 billion for the states and municipalities, and €100 billion for investments to achieve climate neutrality by 2045 via the Climate and Transformation Fund (KTF). This is intended to address the investment backlog in Germany.

One year after the decision, two economic research institutes, after analyzing the federal budget, have concluded that only a small portion of the funds actually flows into infrastructure and climate protection measures. Federal government “Last year, 86 percent of the funds from the Special Fund for Infrastructure and Climate Neutrality (SVIK) were misappropriated,” says the German Economic Institute (IW). "Accordingly, the actual investment expenditure of the federal government, including the SVIK, amounted to around 71 billion euros after adjustment for financial transactions. This corresponds to a nominal increase of only two billion euros compared to 2024."

High rate of misuse

A further twelve billion euros from the special fund replaced expenditures previously financed from the core budget. "In addition, the plans foresaw ten billion euros for the KTF (Construction Financing Fund) and 8,3 billion euros for the federal states. Actual KTF investments in 2025 were 8,3 billion euros below target and even fell below the 2024 level," the researchers stated. Due to bureaucratic reasons, the funds for the federal states could only be disbursed starting this year. Overall, according to the IW (German Economic Institute), the federal government only drew down 42 percent of the planned SVIK (Special Fund for Investment in the Construction Industry) funds in 2025.

The Leibniz Institute for Economic Research at the University of Munich The ifo Institute arrives at an even higher figure: 95 percent of the newly incurred debt was not used for additional investments. While borrowing increased by €24,3 billion, actual federal investments rose by only €1,3 billion compared to 2024. This leaves an investment gap of €23 billion. "According to this calculation, the misappropriation rate is 95 percent," the economists explain.

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The federal government should take countermeasures.

Felix Pakleppa Photo: © ZDB

"Little has been received from the special fund so far. 95 percent of the debt incurred through the SVIK in 2025 did not flow into additional infrastructure investments. This is a disappointing result," commented Felix Pakleppa, CEO of the Central Association of the German Construction Industry"We have long demanded unequivocally: The special fund must act as a genuine additional source of investment and must not be used to plug holes in the core budget. This is not infrastructure policy, this is budget cosmetics."

One must ask whether politicians are truly aware of the seriousness of the situation. "The backlog of municipal investments that has accumulated up to 2024 amounts to 216 billion euros," says Pakleppa. "Around 70 percent of freight transport uses the road network – a network that has been underfunded for years. We call on the federal government to take immediate countermeasures. Investment spending in the core budget must not be reduced further; this will only be possible with comprehensive reforms and savings. Shifting funds between budget lines must be stopped, and the special fund must be used for genuine additional investment."

"There is a lack of resources, not a lack of need."

Holger Schwannecke Photo: © ZDH/Henning Schacht

Holger Schwannecke also argues that the special fund must be invested in infrastructure and not disappear into budget deficits. From the perspective of the Secretary General of the German Confederation of Skilled Crafts, the calculations of economic research institutes confirm that SVIK is not being used as intended. "This negative trend must be corrected. Only in this way can the future viability of the region be restored to a solid foundation." Significant investment shortfalls are being recorded, particularly in construction and infrastructure projects, in whose implementation the skilled trades play a crucial role.

Schwannecke: "There, and in many other areas, the problem is a lack of funds, not a lack of need. Anyone who takes on special debt and announces that it will be used for investments in addition to the core budget funds must not then use it to plug budget gaps." Politicians must ensure that the special debt is consistently used for additional investments and flows as quickly as possible into the construction and modernization of roads, railways, and bridges. The same applies to digitalization, education, and climate protection. DHB now also digital!Simply click here and register for the digital DHB for free!