How the new coalition wants to accelerate investment in infrastructure

The coalition agreement between the CDU/CSU and SPD marks a fundamental new beginning in German infrastructure policy. In view of a considerable investment backlog, the coalition partners are focusing on a comprehensive package of measures that includes both financial and structural reforms. The focus is on the special infrastructure fund, which is intended to enable key investments in the future with a volume of 500 billion euros. This plan is flanked by far-reaching reforms to planning, approval and public procurement law in order to implement projects more quickly, efficiently and sustainably.

Infrastructure special assets

The special infrastructure fund will provide a central financing instrument to substantially reduce the investment backlog that has built up over the years in Germany and at the same time lay the foundations for future economic growth, climate neutrality and social resilience. This special fund with a total volume of 500 billion euros is firmly anchored in the coalition agreement. Of this, 100 billion euros is earmarked for investments by the federal states and local authorities, while a further equal amount will be made available for structurally effective measures via the Climate and Transformation Fund (KTF).

Accelerated planning and approval

However, simply providing financial resources is not enough. The coalition partners recognize that the slow implementation of infrastructure projects often fails due to an overly complex planning and approval system. That is why the CDU/CSU and SPD are focusing on a far-reaching reform of all areas of law relevant to planning. Germany is to become a country of faster decisions and more efficient implementation. The aim is a standardized, flexible procedural law with clear responsibilities and significantly shortened processes.

Specifically, planning, construction, environmental, procurement and administrative procedural law are to be thoroughly revised. An initiative to speed up planning and approval procedures is to be launched at European level. At national level, the existing “Pact for Accelerating Planning, Approval and Implementation” is to be continued. The starting points of the coalition partners are diverse:

Introduction of a one-for-many procedural law

One of the central projects is the introduction of a “one-for-many” procedural law. Formalized procedures are to be made more flexible and procedural stages reduced. Duplicate reviews are to be eliminated, discussion meetings are to become optional, participation processes are to be bundled and environmental assessments are to be carried out only once. In future, replacement new builds will no longer be subject to planning approval. Planning approval will be declared the rule. The introduction of early commencement of measures for important projects is expressly permitted in order to avoid unnecessary postponement of important infrastructure measures. The designation and networking of compensation and replacement measures (biotope network) is to be facilitated by a law on the need for natural areas. The population approach is to be applied nationwide in species and nature conservation.

Together with the federal states, the coalition partners want to fully digitize planning and approval procedures. The expansion of planning capacities is to be driven forward.

Simplification of public procurement law

Another indispensable building block for fast and economical infrastructure projects is a procurement law that is geared towards this. The coalition recognizes that the current procurement structures are too complex and hinder rapid implementation. A fundamental reform of planning, construction, environmental, procurement and administrative procedure law has therefore been announced. The coalition will work to simplify, accelerate and digitalize public procurement law at national and European level for all types of supplies and services for the federal government, federal states and local authorities. The interests of SMEs are to be safeguarded in the process.

As an important concrete measure, the coalition agreement stipulates that the suspensive effect of appeals against decisions of the public procurement tribunals to the higher regional courts is to be abolished in future. This will prevent project standstills due to reviews.

Reform of public sector structures and processes for construction contracts

However, the successful implementation of this ambitious reform and investment strategy also depends to a large extent on whether the necessary organizational and structural conditions can be created at the public building owners entrusted with its implementation. Suitable structures, clear responsibilities and reliable project management by the public sector are required.

The coalition agreement does not contain any specific requirements in this regard. In addition to the federal government, the federal states and local authorities are also responsible. Together with the Kompetenzzentrum Öffentliche Wirtschaft, Infrastruktur und Daseinsvorsorge e. V., KPMG Law published a paper on April 4, 2025 “Special infrastructure assets – 7 instruments to strengthen local authorities“, KPMG Law described instruments that already enable local authorities to accelerate project implementation under current law. In addition to accelerating planning and awarding contracts more quickly, these include setting up suitable project organization structures, involving construction companies in planning at an early stage, bundling services by awarding contracts to general contractors, using partnership models and funding programmes.

The paper also mentions the use of external project managers, the use of artificial intelligence to optimize processes and making procurement and participation processes more flexible.

The municipalities are in demand

At municipal level in particular – where investment requirements are high but personnel resources are often limited – it will be important to build up targeted expertise, simplify procedures and remove administrative hurdles. This is the only way to ensure that cities and municipalities are able to act and that the funds from the special fund are not only planned but actually spent effectively.

Conclusion

In summary, the coalition agreement creates the political and legal framework for infrastructure renewal on a broad front. The special infrastructure fund is the central financial instrument here. This will be accompanied by accelerated planning and reforms to public procurement law. Consistent implementation in practice by the federal government, the federal states and local authorities will be crucial. Successful infrastructure projects require both levels – political management and practical implementation – to be dovetailed in a targeted manner. Only then can the special fund develop its potential: as a lever for sustainable, resilient and climate-neutral infrastructures throughout Germany.