Special assets: Merz calls for freedom, but criticism of chaos is growing!

Special assets: Merz calls for freedom, but criticism of chaos is growing!

In spring 2025, the German government decided on a special fund of 500 billion euros aimed at investing in defense and infrastructure. This decision was made as part of a fundamental change to the Basic Law. The specific changes brought new freedoms for countries in how they use the funds. They no longer require prior federal approval, which has led to a debate about responsibility and control over the use of funds. Critics warn of uncoordinated individual projects and unclear distribution.

CDU leader Friedrich Merz expressed confidence about the new freedoms that municipalities will receive and emphasized the need for new debt. At a Prime Minister's Conference on June 20, 2025, Saxony's Prime Minister Michael Kretschmer praised the new regulation. What is particularly noteworthy is that 100 billion euros of the special fund will flow directly to the federal states, which can also use these funds for sports facilities, cultural projects, internal security, water management and housing construction.

Political reactions and concerns

The new regulations met with both approval and resistance within the federal government. Ralph Brinkhaus from the CDU called for a systematic prioritization of projects in order to meet actual needs. At the same time, representatives of the Green Party expressed concerns. Sebastian Schäfer from the Greens criticized that the special fund was mainly used to secure the coalition instead of ensuring the future viability of the country. The Greens' approval of the amendment to the Basic Law was also conditional on it being additional expenditure and not a redistribution of existing funds.

The legal framework for the special fund was created by amending Articles 109, 115 and 143h of the Basic Law. These changes enable credit-financed investments in defense and climate protection outside the debt brake, which increases flexibility for the federal government. The amendment to the Basic Law received a broad majority in the Bundestag with 512 votes in favor, while 206 MPs voted against it. The reform also met with approval in the Bundesrat, with Bavaria and other federal states contributing to the majority.

Effects of the change in the Basic Law

The new investment package is linked to the expectation that the funds must be approved over a period of twelve years and that the Bundestag can decide with a simple majority how the funds will be specifically used. The debt brake for the federal states will also be relaxed, allowing them to take out loans amounting to 0.35 percent of GDP. This offers countries the opportunity to make urgently needed investments in infrastructure and climate protection.

Overall, political actors now face the challenge of using the allocated funds efficiently and in a targeted manner. It remains to be seen how the states and municipalities will use the special fund and whether the fears about an uncoordinated distribution of the funds will come true.

The debate about the special fund and the associated changes is far from over. Critics and supporters will continue to intensively discuss how the future of German investment policy should be shaped. While the CDU and SPD focus on strengthening infrastructure and defense, the use of funds remains under observation by the opposition and the public.

[Merkur] reports that the changes to the Basic Law were viewed as constitutionally permissible after urgent applications and body lawsuits against the change to the Basic Law were rejected by the Federal Constitutional Court. This gives the government additional support in implementing its plans.

[bpb] has also explained that special funds represent special budgets that are dedicated to specific purposes and are not subject to the debt brake, which is of great interest in the current political situation.