German Finance Minister Lars Klingbeil underscores the urgent need to accelerate the deployment of a €500 billion investment fund aimed at modernizing infrastructure and climate protection, criticizing the current slow pace as 'embarrassing'.

Klingbeil emphasizes that the government must increase the speed of utilizing these funds to achieve visible improvements in Germany's infrastructure.

He advocates for a swift agreement among party leaders on a billion-euro savings package to close the €34 billion budget gap by 2027, aiming to finalize this around the year's end.

The federal government will oversee the allocation of these funds, with a focus on supporting local municipalities by ensuring a substantial share benefits communities directly.

The €500 billion fund, established for infrastructure and climate protection, is prioritized across sectors such as transportation, energy, healthcare, education, research, digitalization, and civil protection.

Out of this total, €100 billion is allocated to federal states, with Klingbeil advocating that 60% of the state share should benefit municipalities, although this has faced opposition from the states.

Klingbeil has urged the states to pass on a larger share of funds to municipalities, ideally 60%, and the federal government plans to oversee this process to ensure funds reach local levels.

Additional investments include €3 billion for road construction by 2029, with plans to streamline planning through the upcoming 'Infrastruktur-Zukunftsgesetz' set to be introduced by the end of 2025.

The government also plans to promote climate-friendly mobility, allocating €3 billion from EU funds by 2029 to help households transition to emissions-free vehicles.

To address the budget shortfall, the SPD advocates for increased taxation on the wealthy, such as higher inheritance taxes, emphasizing fair taxation to fund social programs.

Klingbeil stresses the importance of quick action, stating that Germany's current infrastructure is inadequate and needs significant upgrades to avoid embarrassment.