Revolution in the federal budget: 500 billion euros for Germany's future!

Revolution in the federal budget: 500 billion euros for Germany's future!

On May 16, 2025, the federal government presented a comprehensive package of measures aimed at putting Germany on a growth path. This reform program is intended to strengthen the basis for future investments and the country's competitiveness. A crucial date in this context is June 25, 2025, when the cabinet decision on the 2025 federal budget and the key figures for the 2026 federal budget are expected. Federal Finance Minister Lars Klingbeil announced that the budget would be presented before the summer break.

As part of this program, a total of 500 billion euros will be made available via a special fund over the next twelve years. These funds are intended for significant investments in infrastructure, digitalization, education and energy supply. The first 100 billion euros are already being distributed to the federal states based on the “Königstein Key”.

Distribution of funds to the federal states

The funds are distributed to the federal states as follows:

• Nordrhein-Westfalen: 21,1 Mrd. Euro
• Bayern: 15,6 Mrd. Euro
• Baden-Württemberg: 13 Mrd. Euro
• Niedersachsen: 9,4 Mrd. Euro
• Hessen: 7,4 Mrd. Euro
• Berlin: 5,2 Mrd. Euro
• Sachsen: 5 Mrd. Euro
• Rheinland-Pfalz: 4,8 Mrd. Euro
• Schleswig-Holstein: 3,4 Mrd. Euro
• Brandenburg: 3 Mrd. Euro
• Sachsen-Anhalt: 2,7 Mrd. Euro
• Thüringen: 2,6 Mrd. Euro
• Hamburg: 2,6 Mrd. Euro
• Mecklenburg-Vorpommern: 2 Mrd. Euro
• Saarland: 1,2 Mrd. Euro
• Bremen: 1 Mrd. Euro

However, all projects are subject to financing. Chancellery Minister Thorsten Frei has announced that a timetable for the proposed legislation will be presented in the next few days. The key figures for the 2026 federal budget should also be decided before the summer break, followed by parliamentary discussions after the summer break.

Investments in infrastructure and digital technologies

In addition to the measures already mentioned, the Federal Ministry for Digital and Transport reports that Germany is making targeted investments in infrastructure. This happens through less bureaucracy, faster procedures and easier financing options. Record sums of money are flowing into the expansion of roads, bridges and railways. Volker Wissing emphasizes the need for modern transport routes to make the locations attractive.

The number of publicly accessible charging points for electric vehicles has increased by 160% since the federal government took office. At the same time, 75% of households have access to gigabit bandwidth, which the EU Commission describes as spectacular progress. The mobile phone coverage is also impressive: In Germany, 97% are covered by 4G and 92% by 5G.

For 2025, more than 9 billion euros are available for road and bridge renovations, along with 18.1 billion euros for investments in rail, despite the tight budget situation. The federal budget for 2025 has a total budget of around 46.7 billion euros, of which around 32 billion euros are earmarked for investments.

The federal government is committed to long-term infrastructure projects and plans to provide significant financial resources for road construction and bridge renovation in the coming years. In order to further advance the digital infrastructure, funds totaling around 3 billion euros are planned for broadband expansion and mobile communications funding.

Overall, the federal government is determined to set the course for a sustainable infrastructure and digital innovation as June 25, 2025, the crucial date for the coming political decisions, approaches.