500 Billion Euro Special Fund: Advisory Board Demands More Money for Research

Germany's independent Investment and Innovation Advisory Board has urged the federal government to direct more resources from the nation's 500 billion euro special fund towards key future-oriented sectors, particularly research and development. The board's first report highlights that while the general direction for the fund is appropriate, its deployment needs to be optimized for maximum additional economic growth.

The advisory board emphasized the need for significantly increased investment in research and development. Beyond R&D, the fund's capital should also be channeled into vital areas including transportation infrastructure, civil protection, hospitals and nursing homes, energy infrastructure, educational facilities, and digitalization initiatives. Board chairman Harald Christ stated that the fund's core purpose is aligned with national goals, but its application must be strategic.

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This includes a significantly higher overall use of funds for research and development.

Reviewing the fund's disbursement, the board presented a mixed assessment. In 2025, approximately 14 billion euros were allocated from the federal portion of the fund, which totals 300 billion euros. This represents 74 percent of the planned expenditure for that year. In the first four months of 2026, an additional 11.2 billion euros were disbursed, bringing the utilization rate to 28 percent, which is reportedly in line with projections.

However, a significant disparity was noted in the utilization of funds by Germany's federal states. The report indicates that states have accessed only one percent of their allocated funds so far. This slow uptake by the states contrasts sharply with the federal government's progress and raises concerns about the overall efficiency and speed of investment deployment from the special fund.

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We are at 28 percent, on track.