Will German Election Outcome Boost Infrastructure Spending in Germany?

发布时间:2017-10-19 14:15:46    点击:

  Highlights:

  · The increasing infrastructure spending gap was heavily discussed in the general election campaigns. On September 24 Germany held a General Election as the last country in Europe this year. Besides many other topics in discussion before the election, the declining infrastructure quality and the increasing infrastructure spending gap was one of the topics which received most attention.

  · Difficult coalition negotiations with new collation partners will take time. The new German government will probably consist of a three-party coalition. Especially the smaller coalition partners have contrary opinions on many infrastructure sectors. Therefore any negotiation of a new coalition contract will be quite difficult. The need to find sustainable compromises amongst all partners will not support a clear strategic focus or any major shift in infrastructure spending.

  · Constitution debt limit remains limiting factor. The most limiting factor for a substantial increase in infrastructure spending is coming from the German constitutional debt limit.

  · Infrastructure spending gap will remain. We do not expect a significant boost of infrastructure spending in Germany in the short-term. But we anticipate, that the coalition partners will agree on some relevant non-monetary items that will help to improve infrastructure investment efficiency as well as planning security and support the integration of more private investment in public infrastructure.

[Will German Election Outcome Boost Infrastructure Spending in Germany?]