Promise "Not Kept": Ifo-Institut Complains Massive Alienation of Special Assets
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5 Articles
Schools, bridges, rails and much more: the special fund is intended to help the infrastructure on its feet. However, only a small part of the money is actually invested, the Ifo Institute complains. Most of the funds go elsewhere.
Budget: Ifo-Institut Accuses Federal Government of Alienating More than Half of the New Special Debt
21.6 billion euros new loans, but only 10.1 billion euros additional investments: The Ifo Institute criticizes the Federal Government. Experts warn of the burden on future generations.
The special infrastructure assets should give the federal government more scope for investment. However, a large part is alienated from the purpose – with consequences for future generations.
The German Institute for Economic Research (Ifo) stated that the government did not allocate more than half of the new debt it obtained through private funds to permanent investments such as bridges, roads or climate projects as promised, but instead used it for everyday expenses such as salaries and bills.
Ifo reported that the government used more than half of the new loans it took out from private funds for everyday expenses such as salaries and bills, instead of bridge, road, and climate projects. According to the analysis, only €10.1 billion of the €21.6 billion in loans taken out in the first half of the year was converted into investments.
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