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Lower Saxony Advocates Swift Implementation of Multi-billion-euro Special Funds
Hanover - Olaf Lies, the new Minister President of Lower Saxony, emphasizes the need for a swift rollout of the multi-billion-euro special funds ahead of the first federal-state summit with Chancellor Friedrich Merz. "The focus is on making tangible progress expeditiously," Lies told dpa in Hanover. "Citizens don't want to hear about plans for 2036; they expect actionable steps for 2026 or 2027, and subsequently gains they can witness."
For Lower Saxony, Lies plans to utilize debt-financed special funds to launch an investment offensive, focusing on areas where there is a clear need for improvement for the general public. This encompasses municipalities, such as schooling and sports facilities, as well as state ventures such as road construction and measures to tackle climate change, including flood protection.
Lies accentuated the necessity of concentrating on measures that can be implemented as soon as possible. "Capital doesn't build bridges, capital doesn't construct roads; that's why intensive discussions with the federal government regarding the time frame for implementing the 100 billion euros for the states and municipalities are underway,” he said.
In addition to these plans, Lies also intends to address lower electricity prices at the meeting with Merz next week. "This adjustment needs to happen promptly," he demanded. Furthermore, he will discuss ways to expedite intricate procedural regulations.
Lies underscored that Germany has a limited time window over the next few years to demonstrate success in propelling the nation forward. "That will be the yardstick by which we will be measured," he stated.
Regarding the broader German budget, the nation is faced with a 26 billion euro budget gap in 2025, with discussions underway about utilizing funds from a 500 billion euro infrastructure fund for investments in roads, bridges, railways, kindergartens, schools, hospitals, and housing. Federal expenditure has witnessed significant growth from January to April 2025, largely due to higher investment spending and ongoing grants, including those for the integration of renewable energy support into the core budget. However, these details are not specific to Lower Saxony's plans for the special funds.
In the context of Lower Saxony's plan to swiftly implement multi-billion-euro special funds, Olaf Lies, the Minister President, has highlighted the importance of policy-and-legislation discussions with the federal government regarding the time frame for implementing finance for states and municipalities. Addressing general-news, Lies also intends to discuss lower electricity prices and expedite complex procedural regulations at the meeting with Chancellor Friedrich Merz. Amidst broader German budget gaps and discussions about infrastructure fund investments, it's essential to note that Lower Saxony's special funds focus primarily on targeted investments in areas such as municipalities, schooling, sports facilities, road construction, and climate change measures.
