Germany is set to spend an unprecedented €500 billion over the next 12 years on infrastructure and climate protection, as part of a new constitutional change. However, critics argue that this plan may not be enough to address the country’s underlying problems.
The decision was made by the government, which has secured approval from both chambers of parliament. The money is intended to revive Germany’s economy and combat climate change. However, economists warn that the funds will be slow to materialize due to lengthy approval procedures and a lack of skilled workers.
Inadequate funding and inefficient structures are cited as major causes for delay by experts such as Veronika Grimm. A shortage of skilled workers may further exacerbate issues, with Germany facing an aging population that is expected to retire in the coming years.
The construction industry has also expressed frustration over bureaucracy and a lack of orders, which has slowed down residential construction in particular. Companies are urging faster approval procedures and clear responsibilities.
Critics question whether €1 trillion will be enough to cover the costs, with estimates suggesting that the requirement for infrastructure projects alone would exceed €982 billion by 2035. Additionally, a significant rise in interest payments is looming, with the current debt of €1.7 trillion expected to increase by an additional €37 billion per year from 2035 onwards.
As Germany embarks on this massive spending plan, experts warn that more needs to be done to address underlying issues and ensure sustainable economic growth.
Source: https://www.dw.com/en/how-will-germany-spend-its-1-trillion-loans/a-71995478