ZDH demands reliable funding for educational institutions

More and more vocational training centers for skilled trades are in need of renovation. The German Confederation of Skilled Crafts (ZDH) speaks of an investment backlog and is advocating that funding in the federal budget for 2027 not be cut.

In light of the changes in the labor market brought about by artificial intelligence, vocational training in the skilled trades is gaining in importance. The German Confederation of Skilled Crafts (ZDH) expects this trend to continue in the future. The same applies to the necessary scaling of supply structures in the security and defense industry. Vocational training in the skilled trades is therefore essential for Germany's competitiveness.

"For vocational training to remain a key pillar of the region, learning environments must be modern and attractive, and businesses must be supported with the costs of inter-company apprentice training," demands the German Confederation of Skilled Crafts (ZDH). Despite current budgetary constraints, this requires at least a medium-term continuation of the budget allocations at the 2026 level. The modernization of the skilled trades' training facilities plays a crucial role in this. Funding applications totaling over €3,6 billion have been received for this purpose. An increasing number of training facilities are in need of renovation.

Resolve the investment backlog

The federal government therefore agreed in its coalition agreement to "resolve the investment backlog in educational institutions with reliable funding." For the current fiscal year, the Ministry of Education has earmarked €97 million for this purpose. The Ministry of Economic Affairs has allocated €55 million. However, for the coming year, only €47,8 million is planned for funding the modernization and equipment upgrades in educational centers. The Ministry of Education intends to allocate €97 million again.

"These funding allocations are insufficient to resolve the backlog," says the German Confederation of Skilled Crafts (ZDH). The association is initially calling for an increase in funding to €55 million for 2027. In the medium term, funding must be increased to €70 million by 2030 for the Ministry of Economic Affairs and €120 million for the Ministry of Education. The federal and state governments can each reimburse companies for up to one-third of the costs of inter-company apprenticeship training. According to the ZDH, however, this is not currently happening: the federal and state governments are currently only subsidizing 23 percent instead of the intended 33 percent.

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Ensure consistent funding

To rectify this negative trend, the German Bundestag increased federal subsidies for 2026 to €90 million. The federal states also attempted to provide more funding. However, the Ministry of Economic Affairs reduced its allocation for next year to just under €80 million. "With this amount, a much-needed increase in the subsidy rates, and thus a corresponding reduction in the costs of inter-company apprentice training for businesses, will not be possible. The now higher funding allocations from the federal states will also not be available," stated the German Confederation of Skilled Crafts (ZDH). For the federal funding to reach one-third of the federal level, the Ministry of Economic Affairs' budget allocation for 2027 must return to €90 million.

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