Germany places railways in the first place in 500 billion euros

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Germany plans to make the wrong rail network its first priority, as it seeks to conduct a quick spending from the 500 billion euros infrastructure fund designed to raise the largest economy in Europe from the recession.

The Deputy Advisor and Finance Minister Lars Kellingbeil wants to inject up to 10.5 billion euros in the country’s train ties this year, which gives the state -owned Deutsche BAHN to the lion’s share of $ 22 billion of infrastructure investments allocated for 2025, according to people who have knowledge of plans.

They said that other planned investments this year include 3 billion euros to improve the country’s wide range of coverage and 1 billion euros to update bridges. After 2025, the amounts that were placed in the infrastructure are expected to increase to 35 billion euros annually until 2029.

This plan is part of a series of measures that the coalition government, led by Chancellor Friedrich Mirz, wants to adopt this month, as it will be approved by the two councils in September.

In addition to a huge spending campaign to equip the German army, the 12 -year -old infrastructure fund worth 500 billion euros is essential in the coalition attempts to put an end to three years of economic recession. Last week, the government approved a package of 46 billion euros of corporate tax exemptions for the 2025-2029 coalition period.

The infrastructure fund and its first allocations will be adopted at the Cabinet meeting on June 24, and at the same time a budget for 2025, which has never been completed when the former coalition of Olaf Scholls collapsed due to a funding dispute in November.

After the Conservative Party victory in the early elections in February, Mirz fired the roof of constitutional debts in the country, allowing unlimited borrowing to defense and establish a fund worth 500 billion euros to update the country’s aging roads, bridges, hospitals and schools. A priority for the next two years is the rapid publication of cash, before the government adopts a more strategic and long -term approach to investments.

“The big question is:” to what extent we can put this money at work, “said Henning Meyer, a professor of public policy at the University of Topping.

The poor situation of German trains, which often delayed, has become a symbol of harsh investment that weighs the largest economy in Europe. Before the collapse of the Sholls -led coalition, Deutsche Ban determined at a value of 53 billion euros of the required investments.

A spokesman for the Ministry of Finance refused to comment on the box distributions, but he said that a “group of investments” were planned in the federal railway. He added that “the fundamental goal of the fund is to quickly implement investments in Germany and thus create new jobs and modern infrastructure.”

Deutsche refused to comment.

By reforming the movement between cities, the government is betting that it will change the political mood in the country, as the far -right alternative to Germany has become the second largest party in Bundestag, with more than five votes.

Mayer said: “Although this means disturbances in the short term, this is the place where people are likely to suffer from a tangible improvement in their daily lives.”

The 46 -year -old Clinkebel, who is also a co -leader of the Social Democratic Party, hopes to reap political rewards to upgrade the loud infrastructure in the country before the general elections in 2029.

With a 16 percent vote in February, SPD suffered from the worst electoral result since the end of the nineteenth century. However, as a partner of a potential alliance for Christian Democrats in Mirz, a partner appeared in Mirz, after he excluded the ruling with AFD.

This powerful position to negotiate Klingbeil helped secure the infrastructure fund of 500 billion euros – a pledge of the SPD campaign – in exchange for agreeing to support the MERZ plan to rest the brakes for debts for defensive spending.