Concerns Raised Over Planned Investment Fund and Fiscal Responsibility

The CDU Economic Council has expressed serious concerns regarding the proposed special fund aimed at enhancing infrastructure investments, introduced by the coalition of Union and SPD. The Secretary General of the Economic Council highlighted that if this fund were to be enshrined in the constitution, it would represent a significant error to execute the planned investments within the existing inefficient frameworks.

He emphasized the necessity for the government to implement streamlined and effective processes to ensure sustainable infrastructure development, warning that failure to do so could lead to substantial waste of resources. He noted that while an increase in defense spending financed by debt is justifiable under current circumstances, the same cannot be said for the planned infrastructure fund, particularly given the prevailing conditions.

Furthermore, he pointed out that the planning procedures have become increasingly convoluted, resulting in significant delays and cost escalations for construction projects, particularly in the transport sector. The rising number of lawsuits from environmental groups further exacerbates these costs. Therefore, he called for the depoliticization of planning laws, reforming procurement processes, and reducing unnecessary bureaucracy.

The Federal Association of Taxpayers has echoed these concerns, warning of potential unnecessary expenditures and an uncontrollable rise in national debt. The president of the association cautioned that the special fund could become a 'state self-service store,' predicting that the appeal of substantial federal subsidies may lead to redundant projects at the state and municipal levels.

Additionally, he raised alarms about the unlimited credit opportunities for the federal military, suggesting this could result in a misuse of taxpayer funds. He criticized the proposed structures as having a 'blank check identity,' where there is no incentive to scrutinize the actual necessity of the plans.

Recently, the CDU, CSU, and SPD agreed to relax the debt brake within the constitution for defense expenditures exceeding one percent of the Gross Domestic Product. Additionally, a special fund amounting to EUR500 billion is proposed for the restoration of infrastructure.

To amend the constitution in support of this special fund, a two-thirds majority in both the Bundestag and Bundesrat is required. The Union and SPD aim to hold a vote in the current Bundestag, where they hold a two-thirds majority alongside the Greens. However, the Greens have set forth conditions for their support. Other components of the financial package negotiated by the Union and SPD include exemptions from the debt brake for defense spending and its relaxation for the federal states.