Eder accuses CDU and SPD of breaking promises on special fund - Germany's €24.3B Climate Fund Sparks Political Fury Over Misuse Allegations
A political dispute has erupted over the federal government's use of its special fund for climate and infrastructure. Critics claim most of the €24.3 billion borrowed in 2025 was wasted rather than spent on promised projects. Both the Greens and the FDP have now weighed in, accusing other parties of mismanagement and broken promises.
The German government took on €24.3 billion in debt last year through the Special Fund for Climate Neutrality and Infrastructure (SVIK). However, research by the Ifo Institute revealed that 95%—around €23 billion—was not used for new investments. Instead, the funds largely replaced existing spending in the core budget, such as transport subsidies and hospital upgrades. Actual new federal investments rose by just €1.3 billion compared to 2024.
The IW Cologne reached similar conclusions, reinforcing claims that the money was misused. Daniela Schmitt, the FDP's lead candidate and Rhineland-Palatinate's economics minister, called the fund's handling a 'debt-fueled shell game' with no real benefit for the country. Katrin Eder, the Greens' lead candidate in Rhineland-Palatinate, accused the CDU and SPD of breaking their word. She argued that the fund was meant for extra investments in climate protection and infrastructure but instead undermined public trust. Eder stressed that shifting money from the core budget did not deliver the promised progress.
The controversy highlights a gap between the fund's original purpose and its actual use. With €23 billion diverted rather than invested, the debate now centres on accountability and transparency. The Greens and FDP have both demanded clearer answers on how future funds will be managed.
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