Investment offensive: DGB calls for clarity for jobs and infrastructure

Investment offensive: DGB calls for clarity for jobs and infrastructure

The discussion about the Federal Cabinet's current decisions on the federal budget and the special fund has gained momentum. DGB chairwoman Yasmin Fahimi In this context, calls for a bold signal for more investment and the creation of good jobs. The support from the special fund can be seen as an important step, but the question remains as to how quickly these funds can actually be used. The need for an excellent and affordable infrastructure as well as planning security is considered essential in order to get out of the current crisis situation.

Fahimi appeals to companies to invest in modernization and future-oriented technologies instead of putting pressure on their workforces. The federal government is also planning tax advantages to encourage companies to adopt new technologies. A new electricity price package could bring significant relief for the manufacturing sector, especially in industry. Nevertheless, Fahimi is critical of the planned relief measures because they are not linked to incentives to secure locations or collective agreements.

Background and plans for the special fund

The financial package, which was approved by the Bundestag's Budget Committee, enables new borrowing of over one trillion euros. A special fund of 500 billion euros will be made available for infrastructure and climate protection. These measures still require the approval of the newly elected Bundestag, which needs to be clarified before an upcoming vote on Tuesday. A weakening of the debt brake has also been announced, e.g. for defense spending, which is to be increased to up to three percent of GDP in 2025.

The total size of the special fund also includes 100 billion euros, which are specifically earmarked for the climate and transformation fund. Despite these far-reaching measures, some finance ministers, such as the one from Baden-Württemberg, express concerns about the impact on federalism. There are also legal uncertainties regarding the amendment to the Basic Law, which is necessary for implementation and requires the votes of the Greens.

Critical consideration of the financial consequences

However, financing through the planned tax advantages could lead to reduced revenue for municipalities, which could significantly affect the quality of life locally. To avoid this, Fahimi calls for a permanent structural reform to finance municipalities and the creation of an old debt fund. Further reforms are necessary to ensure responsible and sustainable handling of state finances.

In summary, the situation is complex: there is an urgent need for the state to operate sensibly in order to ensure the necessary investments for positive economic development. The future of Germany depends largely on a fair tax system, which also includes a wealth tax and inheritance tax. This is the only way to create the necessary income and investment scope.