Germany needs 600 billion euros for infrastructure
Germany’s leading economic institutes reported that 600 billion euros are needed to modernize the country’s infrastructure, which is in poor condition compared to other developed countries.
The “Investment requirements for infrastructure and transformation” report for Germany, prepared by the German Economic Institute (IW) and the German Macroeconomics and Business Cycle Research Institute (IMK), has been published.
Accordingly, an additional investment of approximately 600 billion euros will be needed in the next 10 years to modernize Germany’s infrastructure.
In 2019, economic institutes calculated the need for additional public investment for the next 10 years as at least 460 billion euros.
While 60 billion euros are needed for the railway network, approximately 177 billion euros are needed to renew the infrastructure in cities.
Economic institutes predict 200 billion euros for public investments in climate protection, while 127 billion euros are needed to modernize transport roads and local public transport.
Economists predicted that 42 billion euros were needed for education infrastructure.
IMK President Sebastian Dullien emphasized that the modernization of the outdated infrastructure can only be achieved through a reform in the debt brake in the constitution or a new special fund.
Dullien noted that in addition to the German government’s debt brake that limits borrowing, a “Golden Rule” could be considered that would allow the state to receive loans in proportion to investments.