Greens accuse Klingbeil of breaking his word - financing dispute escalates!

Greens accuse Klingbeil of breaking his word - financing dispute escalates!

On May 23, 2025, the Greens expressed sharp criticism of the budget plans of Finance Minister Lars Klingbeil (SPD) and Chancellor Friedrich Merz (CDU). Party leader Felix Banaszak accuses the government coalition of breaking its word and budget trickery. He warns that the planned cuts to the Climate and Transformation Fund (KTF) could endanger the economic foundation.

Banaszak emphasizes that the Greens' approval of the establishment of a loan-financed special budget of 500 billion euros for infrastructure and climate protection depended on the condition that these funds are invested in addition to the regular federal budget. These guarantees now appear to be in doubt, shaking the Greens' confidence in the coalition.

Criticism of budget plans

The Greens' concerns are not unfounded. There are concerns that money from the special fund for infrastructure and climate protection could be misused. Banaszak calls on the government to be reliable and have the courage to invest in order to ensure Germany's competitiveness. According to the agreements, 400 billion euros should flow into infrastructure and 100 billion euros into climate-friendly conversion.

The Ministry of Finance, however, considers the criticism to be unfounded. It indicates a planned allocation of ten billion euros per year from the special fund to the KTF between 2025 and 2034. However, experts see problems in the shift of some spending programs from the federal budget to the KTF, which only covers a small part of the necessary financing.

Details about the special fund

In the context of these debates, the Federal Council has already approved the debt package, which includes an amendment to the Basic Law (GG). This adjustment restricts the debt brake so that certain expenditures - including defense, civil and civil protection as well as intelligence services - no longer have to be taken into account from 1% of gross domestic product. As part of this, a new special fund for infrastructure and climate neutrality worth 500 billion euros will be set up.

Of these 500 billion euros, 100 billion euros will flow into the climate and transformation fund, while another 100 billion euros will be available to the federal states. However, in order to implement the changes, an establishing law from the Bundestag is required. The planned investments must also be “in addition” to normal budget management, i.e. the investment share in the federal budget must exceed 10% of the total expenditure without special funds.

The specific use of the funds has not yet been determined. In this context, the coalition negotiations between the CDU/CSU and SPD are being monitored. The infrastructure that is eligible for funding covers a variety of areas, including civil and civil protection, transport infrastructure, hospital investments, energy infrastructure, education and science infrastructure, and digitalization.

Applications for financing needs from the special fund come, among others, from Deutsche Bahn, which has applied for 148 billion euros for rail infrastructure. In the healthcare system, the desired hospital reform could also be partially financed from the special fund. Investments are also planned in the digitalization of schools as well as in the construction and renovation of school buildings and daycare centers. Private companies also have the opportunity to participate in this special fund through public contracts and funding programs.

However, the specific design of how the funds will be used remains dependent on the future federal government and the respective parliamentary groups. It remains to be seen whether the government can meet the demands and expectations set by both the Greens and citizens.

For further information about the Greens' criticism and the current budget plans, see Digital Daily and the analysis of the special fund Taylor Wessing.