Special funds in Germany: structure and management

Special funds are not reserves or savings, but targeted State financing instruments that are managed outside the regular budget. They form the operational infrastructure of public financing and enable new models of cooperation between the State and private sector. Investors, developers, banks, operators and public institutions gain access to subsidies, guarantees and long-term financing solutions.

The purpose of special funds is to finance strategic future tasks faster, more flexibly and clearly earmarked. Legally, special funds are exempt from the debt brake, which offers additional investment flexibility.

The most important special funds include the Bundeswehr's special fund, the Climate and Transformation Fund (KTF) and the Special Fund for Infrastructure and Climate Neutrality (SVIK). The latter comprises 500 billion euros, of which EUR100 billion will go to the Climate and Transformation Fund and another EUR100 billion to the states and municipalities. Investments will be made in transport networks, educational institutions, energy efficiency, digitalisation and housing, among other things. At the same time, the debt brake for defence spending has been relaxed in order to strengthen the Bundeswehr's ability to form alliances.

All of them pursue one goal: the ability to act in times of transformation and geopolitical uncertainty.