Weekly proceedings in the German Federal Parliament (Bundestag)

Germany Announces Major Investments Across Key Priorities in 2022-2026 Federal Budget

In a bid to foster sustainable economic growth, digital innovation, and social equity, Germany has unveiled its federal budget for the period 2022-2026. The budget focuses on several priority areas, including climate protection, digitization, education, research, infrastructure, and social security.

Climate Protection

Germany is committed to reducing greenhouse gas emissions and supporting the energy transition. The budget prioritises investments in renewable energy, energy efficiency, and technologies aligned with the European Green Deal targets. Funding for green aviation innovation aims to drastically cut emissions by 2035, while supporting the hydrogen economy and energy-efficient industrial processes.

Digitization

The strategy involves enhancing digital infrastructure, including faster broadband and 5G networks, the digital transformation of public administration and services, and investments in AI and data centers. Regulatory simplification and sustainability risk management frameworks, especially in banking and corporate sectors, align with EU directives and oversight.

Education and Research

The budget supports expanding digital education tools, improving access to quality education, and funding advanced research projects. Innovation hubs and research initiatives focus on climate technology, digital transformation, and sustainable industrial development. Programs also target human capital development and social inclusion goals.

Infrastructure

Infrastructure investments emphasise sustainable urban transport, energy-efficient buildings, and resilient supply chains for critical raw materials. Efforts include securing Europe's strategic independence in raw materials necessary for green technologies by fostering partnerships and upgrading mining and processing capabilities within the EU framework.

Social Security

Social security spending aims to improve social inclusion, healthcare, and pensions, responding to demographic changes and ensuring equitable access to social welfare. This aligns with broader sustainable development goals focusing on human capital and removing barriers for at-risk populations.

Relief Package and Investments

With a relief package amounting to 16 billion euros, the government aims to relieve many people noticeably and unbureaucratically. The Federal Police is receiving 1,000 new positions, and the government is particularly strengthening the expansion of rail traffic and renovating transport routes with transport investments increasing to around 20.5 billion euros by 2026.

The German Bundestag is currently advising on the second government draft of the federal budget 2022, and the key figures for the federal budget 2023 and the financial plan up to 2026. The traffic light coalition has set out to make the 2020s a decade of future investments, with the federal budget 2022 putting a lot of money into climate protection, digitization, education, research, and infrastructure.

The government is making more than 200 billion euros available in the Climate and Transformation Fund (KTF) between 2022 and 2026 for the expansion of renewable energies and innovative technologies such as hydrogen. Federal Minister of Housing Klara Geywitz already provided an additional one billion euros to the responsible states for climate-friendly construction of social housing last year, with this "climate billion" making two billion euros of federal funds now available to drive forward both the high-quality energy-efficient new construction and the energy-efficient renovation of social housing.

The budget also includes significant funds to mitigate the societal, social, and economic consequences of the pandemic. This includes an additional 21.7 billion euros for the health fund and a care bonus for nurses to acknowledge their extraordinary efforts during the pandemic. The Federal Office for Civil Protection and Disaster Assistance (BBK) is receiving a 20 million euro increase.

In addition, the Technical Relief Agency (THW) is receiving a 61 million euro increase in its budget. Two billion euros are earmarked for humanitarian aid, 485 million euros for crisis prevention, stabilization, peace promotion, and climate and security policy. The Federal Ministry of the Interior is receiving an additional 17.5 million euros for strengthening measures for extremism prevention, supporting Jewish life in Germany, and addressing minority concerns.

The budget of the Federal Ministry of Housing, Urban Development, and Building (BMWSB) is an investment budget that supports the German economy, with 3.61 billion euros earmarked for investments in 2022. The government's draft budget includes initial measures in response to the impact of the Russian attack on Ukraine, such as 1.5 billion euros for gas reserves and one billion euros for humanitarian aid, crisis management, and food security.

With the establishment of the German Agency for Transfer and Innovation (DATI), the government aims to strengthen regional innovation promotion and contribute to the faster implementation of scientific ideas into practice. The special fund for the Bundeswehr, amounting to 100 billion euros, will be anchored in the Basic Law, creating planning security for the best possible equipment of the soldiers.

Finally, Germany will stabilise the share of development cooperation expenditure in the gross domestic product (ODA quota) at 0.7 percent. The SPD advocates for a broad approach to security policy that includes diplomacy, economic cooperation, and development, reflected in the budget. The budget of the Federal Ministry of Finance is an investment budget that supports the German economy and ensures fiscal stability.

In line with its commitment towards environmental science, Germany’s federal budget prioritizes investments in renewable energy, energy efficiency, and technology aligned with the European Green Deal targets.
As part of its climate protection strategy, the budget aims to drastically cut emissions by 2035 through funding for green aviation innovation and supporting the hydrogen economy and energy-efficient industrial processes.
Recognizing the importance of education and self-development, the budget supports expanding digital education tools, research in climate technology, digital transformation, and sustainable industrial development, and programs targeting human capital development and social inclusion goals.
In an effort to combat climate change, the budget makes over 200 billion euros available in the Climate and Transformation Fund for the expansion of renewable energies and innovative technologies such as hydrogen.
Acknowledging the extraordinary efforts of nurses during the pandemic, the budget provides a care bonus for them, while also setting aside additional funds for the health fund, humanitarian aid, crisis prevention, and peace promotion.
In connection with the war and conflicts, the budget strengthens the Federal Ministry of the Interior for measures against extremism prevention, supporting Jewish life, and addressing minority concerns.
As part of its ambition for sustainable economic growth, the budget establishes the German Agency for Transfer and Innovation to promote regional innovation, and anchors a special fund for the Bundeswehr in the Basic Law for planning security. The budget of the Federal Ministry of Finance also supports the German economy, ensuring fiscal stability in personal-finance, budgeting, and finance sectors, while maintaining a focus on general-news and politics.