Germany using landmark infrastructure fund to ease budget pressures

Germany using landmark infrastructure fund to ease budget pressures

Germany is using some of the financial firepower created by its taboo-busting fiscal reforms to prop up day-to-day spending rather than directing it all towards additional infrastructure to make the country fitter for the future.

Germany’s Infrastructure Fund and the Politics of Fiscal Room

Germany’s Chancellor Friedrich Merz reshaped fiscal policy with a landmark reform of the debt brake and the creation of a massive off-budget infrastructure fund. The initiative was sold as a transformative step unlocking hundreds of billions of euros to revitalize the economy, modernize infrastructure, and strengthen Germany’s military. The reform was also meant to bypass […] The post Germany’s Infrastructure Fund and the Politics of Fiscal Room…