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In a recent development, the €100 billion infrastructure package in Germany is set to stimulate local investments and address the imbalance in funding between different levels of government. The package, which is part of a broader €500 billion fund aimed at infrastructure and climate initiatives over the next decade, prioritises investments in transport infrastructure, hospital infrastructure, and housing.
According to the latest "OB Barometer," 70% of surveyed German mayors consider municipal finances to be the most pressing issue. This concern has been echoed by the mayor of Wiesbaden, who expects the state to agree on a fair distribution of funds for school expansion, which requires a high double-digit million amount. Wiesbaden plans to invest nearly half a billion euros in school construction and renovation, but the specific details of how the allocated funds will be used are yet to be disclosed.
The mayor of Wiesbaden, Mende, has been vocal about the need for a fundamental reorganization of financial relationships between the federal government, states, and municipalities. Mende supports municipalities across party lines who complain about poor financial equipment and believes the infrastructure package should address this imbalance.
The press release about the infrastructure package was issued by the press office of Wiesbaden. However, it does not mention the 70% of surveyed German mayors who consider municipal finances to be the most pressing issue, nor does it mention Mende's support for municipalities across party lines who complain about poor financial equipment.
The infrastructure package prioritises investments in transport infrastructure, with around €13.5 billion earmarked for transport, hospital, and housing infrastructure in 2025 alone. In transport, around €2.5 billion is designated for motorway bridge modernization, approximately €7.6 billion for maintaining the federal railway network, and €1.6 billion for implementing the European Rail Traffic Management System (ERTMS). Hospital infrastructure is allocated around €1.5 billion, supporting modernization and new construction projects. Housing infrastructure funding includes roughly €243 million for climate-friendly construction, €62 million for subsidies facilitating home purchases, and funds for renovating or converting properties.
Regarding the distribution between states and municipalities, while explicit breakdowns are not provided, the involvement of multiple infrastructure sectors suggests allocations flow through various government levels—federal, state, and municipal—based on project type and jurisdiction. Municipalities likely receive targeted funds for housing and local transport projects, whereas states and the federal government handle broader transport and hospital infrastructure.
Clear earmarking of funds to specific infrastructure sectors and projects aligned with climate and modernization goals, integration with broader national and EU climate strategies, coordination through the federal government, and engagement with public-private partnerships are some of the steps taken to ensure fair distribution.
Mende made these statements on Friday in Wiesbaden. For more information about the Wiesbaden town hall, please visit their website. The press release does not mention changes in the funding relationships between the federal government, states, and municipalities.
- The mayor of Wiesbaden, Mende, has expressed support for municipalities across party lines who are concerned about their financial equipment, calling for a fundamental reorganization of financial relationships between the federal government, states, and municipalities.
- Despite the emphasis on infrastructure funding in the recent €100 billion package in Germany, there is no mention of addressing the concern voiced by 70% of surveyed German mayors regarding municipal finances being the most pressing issue.
