Federal Government Rejects Green Party Criticism Over Infrastructure Special Fund

The federal government has dismissed recent criticism from the Green Party regarding its fiscal management, specifically in relation to the newly established infrastructure special fund. According to the government, all procedures concerning the 2025 federal budget comply with constitutional requirements.

The Green Party has raised concerns about the allocation of funds from the 500 billion euro special fund intended for the modernization of national infrastructure. Party representatives have contended that significant portions of this fund are being redirected towards initiatives that do not directly contribute to infrastructure improvements, such as pension-related measures and reduced value-added tax rates for restaurant meals. They suggest that these allocations may constitute indirect campaign incentives rather than targeted investments.

Legal opinions commissioned by the Greens support their position, arguing that the special fund is being used in part to cover budget shortfalls rather than to finance additional investments. The Green Party claims that the budget laws for 2025 and 2026 may not align with constitutional standards. However, the government maintains that the ratio of investments will remain above the required ten percent threshold throughout the medium-term financial planning period, in accordance with legal stipulations.

The Ministry of Finance has stated that it is prepared for potential legal challenges in the Federal Constitutional Court but is confident in the legality of its budgetary processes. The ministry emphasized that it will monitor further developments closely while adhering to all established financial guidelines.

The Green Party, which previously supported the constitutional amendments necessary for the creation of the debt-financed special fund, had anticipated that the entirety of the funds would be directed toward new infrastructure projects. Nonetheless, the legal analyses obtained by the Greens acknowledge that pursuing a constitutional challenge carries risks and offers uncertain prospects of success.

Parliament approved the previous year's budget on 18 September 2025, following delays caused by the dissolution of the former governing coalition and the subsequent change in government leadership. The budget presented by the current finance minister projected expenditures of 502.5 billion euros for 2025, an increase of approximately 25 billion euros compared to the previous year. This new budget applied only to the final quarter of 2025, concluding a period of provisional fiscal management. The federal budget for 2026 was adopted at the end of November 2025.

The ongoing debate centers on the appropriate use of the infrastructure special fund and the extent to which it should be allocated exclusively for new investments as opposed to covering pre-existing financial obligations. The government and the Green Party remain divided on the interpretation of fiscal responsibility and constitutional compliance in the context of budget planning and fund allocation.