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Ifo institute: German government misappropriated 95 per cent of new debt for infrastructure

According to a new analysis by the ifo Institute, one of Germany's most respected economic research organisations, 95 per cent of the €24.3 billion in new borrowing taken on in 2025 under the special fund for climate neutrality and infrastructure was not used for additional investments but instead diverted to cover shortfalls elsewhere in the federal budget.