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Public financing needs for the modernisation of Germany

Germany is currently facing a series of concurrent crises and a considerable modernisation backlog. In light of these challenges, the country is confronted with the historic task of implementing the necessary measures to ensure productivity, public services and security in the coming years. This also requires the targeted allocation of public financing. The objective of this study is to map the additional public financing required to achieve widely accepted targets in areas that are pivotal to Germany's stability and future. To the best of our knowledge, this represents the most comprehensive current analysis of public financing needs. Notably, we also cover the healthcare sector and, crucially, the substantial challenge of achieving defence-readiness. Overall, we estimate an additional public financing need of 782 billion euros across the levels of government from 2025 to 2030. This would correspond to an average of around 3 percent of gross domestic product (GDP) per year […]