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Municipalities raise the alarm: Missing funds in the special fund!
The German District Council criticizes the lack of a minimum quota for municipalities in the planned special fund of 500 billion euros.
Municipalities raise the alarm: Missing funds in the special fund!
The German District Council has practiced sharp criticism of the current plans to implement the special fund, which is said to be of great importance for state infrastructure investments. According to ZVW There is no longer a fixed rate in the cabinet submission that ensures that 60 percent of the total of 100 billion euros for the Countries benefit the municipalities. Hans-Günter Henneke, General Manager of the German District Day, described the failure as a "hit in the face" for the cities, counties and municipalities.
Currently, the cabinet deals with the draft law to finance infrastructure investments. Overall, the special fund comprises 500 billion euros, which is intended for both infrastructure and for climate protection. The funds should also serve the modern design of Germany in order to remedy defects such as broken streets or slow internet that have increased in recent years.
Details on the special fund
The Federal Government decided in March 2025 to change the Basic Law that enables the creation of this special fund. It should not only result in strengthening competitiveness, but is also designed to achieve climate neutrality by 2045. The special fund consists of three pillars: 100 billion euros for the states and municipalities, as well as another 100 billion euros for the climate and transformation fund and 300 billion euros for additional investments of the federal government, such as the Federal Government informed.
Last but not least, it is planned that the funds from the special fund can be approved within twelve years. For example, over 9 billion euros are planned for reliable rail traffic in 2025, as well as 6.5 billion euros for improving childcare and digital education. In addition, at least 4 billion euros are planned for digitization annually, with increasing amounts in the coming years.A fair and binding participation of the municipalities is crucial for effective growth impulses, according to Henneke. The 60 percent minimum quota for the municipalities was already defined in the draft lecturer of the Ministry of Finance. Now the municipalities are concerned because the distribution power remains with the countries that have not always acted in the past in the sense of the municipal concerns. Henneke therefore underlines the need for a legal anchoring of the shares for municipalities.
Securing investments and reforms
The federal government plans to use budget consolidation measures in addition to infrastructure investments. These include reforms of basic security, personnel reduction (except for security authorities), as well as savings on funding programs and development aid. The goal is to design the expenditure in the federal budget in such a way that they are ten percent above the estimated total expenditure.
The special assets' success controls are also regulated: checks after four and eight years as well as a final control are planned after the end of the term. This will ensure the transparency and effectiveness of the investments.