Weekly updates from the German Parliament, Bundestag

Germany's 2022 Budget: A Comprehensive Approach to Challenges

The German federal budget for 2022 reflects a comprehensive approach to addressing the country's ongoing challenges, including the war in Ukraine, the pandemic, and rising energy costs. The budget allocated around 51 billion euros, a ten billion euro increase from the pre-crisis level of 2019, and aims to maintain this amount until 2026.

Climate and Energy Transition

Germany is making significant investments in renewable energy, aiming to reach its 2045 climate neutrality target. The budget includes a Climate and Transformation Fund with €100 billion dedicated to climate and transformation projects within a broader €500 billion Infrastructure Special Fund. The government is expanding renewable capacity, reducing energy costs by removing levies such as the gas storage levy, and investing in hydrogen technologies.

Infrastructure Modernization

The Infrastructure Special Fund, totalling €500 billion, is earmarked for bolstering federal, state, and municipal infrastructure. €150 billion is set aside for infrastructure measures from 2025 to 2029, prioritizing key sectors for sustainable and modern development.

Digital Transformation

Investments are targeted at expanding fiber optic networks to reduce the urban-rural digital divide. The government promotes the development of artificial intelligence, cloud technologies, and digital sovereignty initiatives. These efforts aim to sustain Germany’s economic growth and national security in the digital economy.

Education and Research

While precise budget numbers for education and research are not detailed, the "Made for Germany" initiative involves €631 billion in investments by companies that include significant expenditures on research and development, signaling strong private sector support for innovation and skills development.

Pandemic Response

The budget accommodates ongoing pandemic management through health system support and economic relief measures, although specific 2022 allocations are not detailed. The government has maintained policy flexibility to respond to COVID-19 challenges.

Social Security and Housing Construction

The federal budget prioritizes social cohesion and housing, with investments aimed at supporting social security systems and expanding housing supply. The government has agreed to build up to 100,000 publicly funded apartments each year, and a total of 14.5 billion euros will be provided for social housing in the coming years.

Internal Security

While not detailed explicitly, internal security remains a budget priority, including rising defense spending to 2.4% of GDP by 2025, reflecting responses to Russia’s war in Ukraine and heightened security challenges.

International Responsibility

Germany’s development cooperation budget is projected to decrease, with cuts to the Federal Ministry for Economic Cooperation and Development from 2025 onward, reflecting a political compromise but maintaining strategic investments into global food security and stability to mitigate migration pressures.

Support for Children and Young People

Around 272 million euros are earmarked for the "Catch-up after Corona for Children and Young People" action program in 2022. Funds for early childhood language and integration support are being increased to over 387 million euros.

Humanitarian Aid and Crisis Prevention

The SPD is increasing the budget of the Foreign Office, with 2 billion euros earmarked for humanitarian aid, and 485 million euros for crisis prevention, stabilization, peace promotion, and climate and security policy.

Relief Package and Humanitarian Aid for Ukraine

An additional budget is being introduced to provide funds for mitigating the effects of the Ukraine war, cushioning rising energy costs, and expanding humanitarian aid to Ukraine.

Support for Nurses and Extremism Prevention

Nurses will receive a care bonus, with the federal government providing one billion euros to recognize their extraordinary efforts during the pandemic. An additional 17.5 million euros is being invested in strengthening measures for extremism prevention, supporting Jewish life in Germany, and addressing the concerns of minorities.

Strengthening Transport Infrastructure

Transport investments are increasing to around 20.5 billion euros by 2026, with the money being particularly strengthening rail traffic and renovating transport routes.

Stabilizing the ODA Quota

Germany will stabilize the share of expenditures for development cooperation in the gross domestic product (ODA quota) at 0.7 percent.

Funds for Civil Protection and Disaster Assistance

A 20 million euro increase is being made for the Federal Agency for Civil Protection and Disaster Assistance (BBK).

Planning Security for the Bundeswehr

The special fund for the Bundeswehr will be anchored in the Basic Law, ensuring planning security for the best possible equipment of soldiers.

Federal Police Expansion

The Federal Police is receiving 1,000 new positions.

Strengthening Democracy

The federal program "Democracy Lives!" is being topped up by a further 15 million euros.

Budget Approval Process

The German Bundestag is 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.

Additional Funding from Last Year

Last year, Federal Minister of Housing Klara Geywitz already provided the responsible states with an additional one billion euros for climate-friendly construction of social housing.

Initial Measures in Response to the Russian Attack on Ukraine

The government's draft budget includes initial measures in response to the impacts 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.

More Funds for the Climate and Transformation Fund

More than 200 billion euros will be made available in the Climate and Transformation Fund (KTF) between 2022 and 2026 for the expansion of renewable energies and innovative technologies such as hydrogen.

Independent Ministry of Housing

There is an independent Ministry of Housing, and the budget of the Federal Ministry of Housing, Urban Development, and Building (BMWSB) is an investment budget that supports the German economy.

Weekly updates from the German Parliament, Bundestag