
Dispute over the use of billions from the special fund for infrastructure and climate neutrality (SVIK)
AI-generated summary
The SVIK was created to finance infrastructure and climate neutrality. There are ongoing debates about whether borrowing actually leads to additional investment.
Berlin. The Federal Ministry of Finance has sharply rejected the Ifo Institute's accusation of misappropriation of billions from the Special Fund for Infrastructure and Climate Neutrality (SVIK).
“The Ifo Institute continues to use a methodology that corresponds neither to the legal basis for the special fund nor to reality,” said a ministry spokesman on Tuesday. “The criticism is and remains wrong.” As required, the federal government is keeping the investment rate in the core budget well above ten percent. This means that the expenses from the special fund are additional investments.
The institute had previously calculated that the federal government did not use 75 percent of the new debt taken out for additional investments last year. “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.

Direct peace talks between Ukraine and Russia have begun in Abu Dhabi under US mediation. The focus is on security guarantees and an end to the war that has been ongoing since 2022. EU representatives are monitoring the process.

The Bundestag is discussing a reform of intelligence law that would allow individual state authorities to be excluded from the Federal Office for the Protection of the Constitution in the event of security risks. The background is concern about extremist influence.

The Union is skeptical about the SPD's demand to include members of the Bundestag in the statutory pension insurance. CSU politician Hoffmann warns of high costs and complex parallel structures during implementation.

Russia and Ukraine have begun negotiations to end the war in Abu Dhabi under US mediation. At the same time, Western partners are discussing security guarantees and financing aid to Ukraine.
The SPD wants to prevent planned cuts in family benefits in the negotiations on the 2027 federal budget and is accusing the Union and Finance Minister Klingbeil of unfunded financial demands and massive cuts in the motorway budget.

The federal and state governments are negotiating tax simplifications for employees. There is talk of increasing the employee allowance to 1,840 euros in order to reduce the obligation to provide proof of income-related expenses. Bavaria and North Rhine-Westphalia express concerns about planned restrictions.