Huge investments worth billions: This is how municipalities fight against potholes!

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On June 6, 2025, the Federal Ministry of Finance will provide information about billions in investments in municipal infrastructure and their challenges.

Huge investments worth billions: This is how municipalities fight against potholes!

In Germany, potholes in the asphalt are a common sight, which puts considerable strain on the transport infrastructure. To counteract this problem, the Federal Ministry of Finance is planning extensive investments. A new draft stipulates that a debt-financed special pot totaling 500 billion euros will be made available. These funds are to be used, among other things, for civil protection, the expansion of transport infrastructure, hospitals, energy and heating networks and for daycare centers. How Deutschlandfunk reported, the plans are currently being coordinated by departments, which means that changes are still possible.

The federal states are required to determine their exact share of the funds themselves. The specific needs of financially weak municipalities must be given particular consideration. However, economist Friedrich Heinemann warns against a possible refinancing of planned investments by the federal states and suggests introducing strict conditions for the law establishing special funds. A precise definition of the “additionality” of investments in the law and binding targets in the federal budget are also on the agenda.

Fight against dilapidated roads

The investments are particularly important because roads in Germany, and especially in Bavaria, are severely affected. Loud BR High financial expenditure will be required for the federal, state and local governments in the coming years. The Bavarian road network stretches over around 41,800 kilometers, with every fourth kilometer being in poor or even very poor condition. The largest share of this falls on municipal roads.

A current study estimates the investment requirement for the municipal road network in Bavaria and Baden-Württemberg at around 45 billion euros. An example of this need for renovation is state road 2092 in Irlham, whose renovation was scheduled to begin in 2024. In fact, only 700 meters could be renewed because insufficient subsoil led to delays and even construction stops. Hermann Streicher from the Rosenheim State Building Authority explains that soil improvement measures were necessary, and the process of re-tendering the renovation contract is still ongoing.

The situation illustrates how urgently there is a need for action to modernize the infrastructure in Germany, especially in the municipalities, and to meet the current challenges. The upcoming special pot could make a decisive contribution to solving these problems.