"Clemens Fuest, head of the Ifo Institute for Economic Research, had warned of the potential negative consequences for fiscal policy a year ago, when the Bundestag approved the historically unprecedented credit package."
"Klingbeil claims the loans from the special debt fund were spent exclusively on infrastructure as required by law, emphasizing the need for funds to reach local communities."
"Fuest reiterated his criticism, stating that 95% of the funds have been misappropriated to balance the 2025 budget, highlighting concerns over fiscal policy."
"Klingbeil stated, 'What matters is that swimming pools are being renovated, that bridges are being repaired, that high-speed internet is being installed.'"
Lars Klingbeil, the finance minister, has access to unprecedented funds following the Bundestag's approval of a special infrastructure and climate neutrality fund. However, two economic research institutes report that instead of investing in new projects, Klingbeil is using these funds to address budget deficits. Despite his denial of misappropriation, critics argue that 95% of the funds have been misused. Klingbeil emphasizes the importance of ensuring that funds benefit local communities through renovations and repairs.
Read at www.dw.com
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