Welfare associations demand billions for social infrastructure!

Welfare associations demand billions for social infrastructure!

The discussion about urgently needed investments in social and infrastructural projects in Germany is gaining momentum. Welfare associations have written to Federal Finance Minister Klingbeil and Chancellery Minister Frei and are calling for billions in investments in social institutions. This initiative, by a nationwide working group consisting of organizations such as the German Red Cross, Diakonie and Caritas, highlights that a significant investment backlog has arisen in recent years. The state performance fees cover loud Deutschlandfunk only the operating costs, which makes the need for action clear.

The need for not only climate-friendly renovations, but also digital accessibility of social offerings is particularly urgent. In order to meet these requirements, a funding program of over ten billion euros is needed from 2026. The construction site report on the investment backlog also brings to the fore the importance of social infrastructure in order to meet future challenges.

Climate protection and infrastructure in focus

At the same time, there are demands that affect the entire area of ​​public investment. Experts demand that the German state should invest around 60 billion euros annually in infrastructure, the economy and society over the next ten years. This would total around 600 billion euros by the mid-2030s. The aim of these investments is to resolve the investment backlog in municipalities and to make progress in educational infrastructure, energy and transport networks, and decarbonization. This information is based on a study by the IMK of the Hans Böckler Foundation and the IW, which is being presented today in Berlin and underlines the urgency for public investment since 2019. Crises since 2020 have further exacerbated the situation and caused the overall economic situation to stagnate, which has led to uncertainty about energy supplies and weak growth due to demographic reasons.

The study shows that it is necessary to also take municipal climate adaptation investments into account in order to counteract the threat of damage caused by climate change. Climate protection measures, such as energy-efficient building renovations and the expansion of public transport, play a central role. Concrete figures support the need for investment in various areas: a total of 177 billion euros is planned for the municipal renovation backlog, 13 billion euros for climate adaptation, 200 billion euros for climate protection, 127 billion euros for traffic routes and local public transport, 42 billion euros for educational infrastructure and 37 billion euros for social housing.

Financing strategies and reforms of the debt brake

These investments will be financed by the need for loans. Against this background, there are proposals to reform the debt brake in order to create the necessary scope for new loans. The creation of a special infrastructure fund is also being discussed in order to implement additional investments in a timely manner. The importance of acting quickly is becoming increasingly clear: in order to counteract the impending stagnation and reduce decarbonization costs, timely investments are essential. The ongoing operating costs must also be taken into account in the annual financial planning in order to guarantee the sustainability of the projects.

In summary, there is a clear direction: In order to meet the challenges of the future, huge financial resources are required, both in the social sector and for infrastructure. Only through concerted efforts and decisive action can important progress be made in the upcoming transformations.