Ifo Institute: Federal government uses 75 percent of new debt for current expenses

Berlin. Since the introduction of the special fund for infrastructure and climate neutrality (SVIK) last year, the federal government has not used 75 percent of the new debt for additional investments. This emerges from a new study by the Ifo Institute.

“Politicians have not yet kept the political promise when setting up the special fund to use additional debt entirely for additional investments,” said Ifo President Clemens Fuest.

In the first half of 2026, the misuse rate is 53 percent. Of the 21.6 billion euros in new loans, investments only increased by 10.1 billion euros compared to the level before the introduction of the fund.

In total, the federal government had taken out 45.9 billion euros in loans through the SVIK by June 2026, but investments only increased by 11.3 billion euros. The resulting investment gap of 34.6 billion euros created budgetary scope for other expenditure, explained Ifo specialist Max Lay.

The high ratio is either an indication of a below-average outflow of funds in the first half of the year or a signal that even less will be invested in the 2026 core budget than planned, the analysis said. The institute emphasized that the investment gap and misappropriation rate were economic indicators and not a “classification of the legality of the SVIK”.