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Germany has 76 billions euros avaliable, but it is unable to use them

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It is a German-style paradox: Germany’s federal government and those in the states are complaining about severe financial difficulties and the cuts they will have to implement in order to succeed in the austerity they have imposed on themselves.

The government is struggling to fill budget holes, the federal states are in such financial distress that even the CDU-led governments are calling for loosening the debt brake, and yet there are many billions of dollars unused

Here is the paradox: Federal and state governments have a huge amount of unspent funds; recently, these forgotten funds totaled 76 billion.
According to a new list from the Federal Ministry of Finance, available to Handelsblatt, federal ministries have reported more than 29 billion euros in residual spending in 2024. Around 47 billion euros were still held by the federal states, per a Handelsblatt survey of the 16 ministries of finance.  Thus, the total available for spending, unused, amounts to as much as 76 billion euros. Enough money to make necessary investments in German infrastructure and boost the economy

Residual spending occurs, for example, when construction projects are delayed and funds are not recalled in time. But also when projects cannot be implemented due to administrative snags. For example, funds often remain for roads, bridges or railways because approval procedures have not yet been completed.

Düsseldorf economist Jens Südekum calls for administrative reform and simpler procurement guidelines. CDU General Secretary Carsten Linnemann also sees the need for action. “We need state reform-this is becoming increasingly evident,” Linnemann told Handelsblatt.
This money is simply not being used because Germany’s public budgets are extremely rigid and allow funds to be reallocated only after long lead times and controls.

So available resources, already funded by taxes, are abandoned because they are, perhaps, pimped into projects that will never see the light of day.
But we are talking about Germany: a country where flexibility is seen as evil and therefore better to break the public budget and citizens’ wallets than to use a little flexibility

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