Germany's Bundestag has approved the creation of a EUR 500 billion special fund for infrastructure investment and climate neutrality. Under the new arrangement, defense and security spending will be exempted from the debt brake, while resources will be allocated to infrastructure projects and climate transformation for 12 years.
EUR 100 billion of the fund will be transferred to the Climate and Transformation Fund, while another EUR 100 billion will be allocated to the states for infrastructure investments. In order for the new regulation to be finalized, it must be voted on by the Bundesrat on March 21, 2025.
Kerstin Maria Rippel, Managing Director of the German Steel Federation, emphasized that the Bundestag's approval of the fund is a critical step for Germany's economic future. Rippel stated as follows:
“The Bundestag's approval of the special fund is an extremely important decision for Germany's workforce and steel industry. Investments in modernizing and expanding our infrastructure can put our country back on track and provide the economic stimulus we urgently need.”
Rippel added that the funds will contribute to achieving two important goals: Strengthening the domestic economy and achieving climate goals. She also emphasized the need to strengthen the local raw materials industry and medium-sized suppliers by making specific investments in low-emission raw materials. The steel sector and other basic industries are critical for infrastructure construction (railways, bridges, electricity, gas and hydrogen networks), she stated.
Finally, Rippel called on the states to give their consent in the Bundesrat vote on March 21 and on future coalition partners to quickly conclude negotiations. By taking these steps, Germany can achieve its infrastructure and climate goals, she added. “The steel industry is ready to play its part,” she noted.
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