Construction work underway on the SueOstLink transmission project in Germany. (Image: Strabag)

The CDU and SPD parties announced plans to loosen Germany’s “debt brake� so that it could increase defence spending and create the �500 billion fund earlier this month.

However, they have been racing to establish a two-thirds majority to get the proposals through the old parliament. The two parties are expected to form a coalition to govern the country following an election in February but an increased share of votes for the hard left Die Linke party and the hard right Alternative für Deutschland (AfD) party means that it would be harder to get the plans through once the new parliament sits from the end of this month.

The task of getting the proposals approved looked to be in trouble after the Greens said they would oppose them. But they have since decided to back them, after CDU leader Friedrich Merz agreed that �100 billion of the fund would be transferred to the country’s Climate and Transformation Fund (KTF).

Tim-Oliver Müller, general manager of Bauindustrie said, “It’s a good sign that the CDU/CSU, SPD, and Greens have agreed on a special infrastructure fund, which will be added to the investment funds in the federal budget. With this signal, the dilapidated infrastructure will finally receive the funds it needs to be repaired.

“This is urgently needed, because after the dramatic collapse of the Carola Bridge in Dresden, the demolition of the Rahmedetal Bridge and the impending complete closure of the Ringbahn Bridge in the middle of the capital, it should be clear to everyone that we have no time to lose.

“The construction industry is ready and can get started immediately. Now it’s important that public clients deploy the funds in an orderly and timely manner. The current lengthy planning processes won’t achieve this. We’ll have to talk about what a good structure—including on the client side—should look like to create the structural conditions for efficient implementation.�

Felix Pakleppa, chief executive of the Zentralverband Deutschlands (ZDB), added, “Regardless of the need to be able to credibly defend our country, the agreement on additional funds for infrastructure rehabilitation is a good signal for our country.

“Since the special fund is financed with debt, the new federal government has a responsibility to invest these funds additionally in infrastructure and thus in increasing our country’s competitiveness and performance � not in even more consumer spending. The German construction industry, with its qualified workforce, can tackle the upcoming construction projects immediately, as too many orders are really not our problem at the moment.�