Ifo Institute accuses the federal government of misappropriating more than half of the new special debts

According to a study, more than half of the debt raised through the “special fund” in the first half of the year did not flow into additional federal investments.

Of the 21.6 billion euros in new loans, investments only increased by 10.1 billion euros compared to the level before the fund was introduced, the Munich Ifo Institute announced on Tuesday. This corresponds to a misuse rate of 53 percent.

Since the introduction of the “Special Fund for Infrastructure and Climate Neutrality” (SVIK) last year, the rate has even been 75 percent. “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.

“If the funds actually flow into current expenses instead of into additional investments, future generations will inherit the debt without the corresponding value,” warned Ifo researcher Emilie Höslinger. 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”.