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German Construction Sector Charges Chancellor Merz with Neglect

The planned use (or, rather absence of use) of the new €500 billion special fund for infrastructure modernization, has met with sharp criticism from the construction industry. Contrary to what was promised, there will be hardly any additional investment, said Peter Hübner, president of the German Construction Industry Association (HDB), on Sept. 15 in Berlin. CDU Chancellor Friedrich Merz’s government had promised action on the construction issue. “Instead, we are seeing the same sleight-of-hand as in previous years…. The normal budget is shrinking, and the gap is being filled with the special fund.”

In 2026, a total of €33.7 billion would be available for investments in roads, railways, and waterways. That is only €270 million more than in 2025. Take highways, for example: Here, too, there is only a slight increase to €10.3 billion—€260 million more than in 2025. According to the HDB, this is enough to build two medium-sized bridges. “We have 400 dilapidated bridges—just for comparison.” The small increase on paper will also be eaten up by price increases. And of the €500 billion, €100 billion is earmarked for climate protection—not necessarily for real construction projects.

Hübner criticized the neglect shown by Merz for the construction sector, saying that, “at the moment, we have the feeling that foreign policy is more interesting than domestic policy.” According to Hübner, the construction industry has enough capacity to handle additional investments. Presently, it is only operating at about 70% capacity.