Government has accumulated more than R$3 trillion to invest in infrastructure, but still doesn't know how to use it

The country is feeling the weight of large infrastructure projects that seem to never come to fruition.

In recent years, the country has been dealing with a series of obstacles in its major infrastructure projects, and the scenario is not optimistic. We are talking about Germany.

Despite having a billion-dollar financial package approved by the Bundestag (lower house of parliament) and the Bundesrat (upper house), the truth is that the difficulties go beyond the simple lack of resources.

O package includes 500 billion euros, around R$ 3 trillion, to be invested in infrastructure until 2036, but, according to experts, this does not solve the problem.

The central issue is the efficiency of the processes and the government's ability to manage and apply these funds.

In an interview with the Bundestag Budget Committee, economist and professor at the Technical University of Nuremberg, Veronika Grimm, stated that the biggest obstacle to using this fund is the long planning process and bureaucratic authorizations.

“Germany is suffocated by bureaucracy and inefficient structures. There is no point in having money if we cannot use it quickly,” declared Grimm.

The lack of speed in spending these funds has been a constant concern, with estimates suggesting that despite the abundance of resources, the economy will not see major immediate results.

The forecast is that the positive impact on finances will only be moderate in 2026, depending on how these funds are applied.

Construction sector under pressure: what is needed to resolve the bottlenecks?

One sector that could be key to revitalizing Germany's infrastructure is construction. However, the outlook is worrying.

40% of companies in the sector report a shortage of orders, with some projects being put on hold due to the economic crisis and rising prices driven by global inflation and the war in Ukraine.

This shortage of projects has created a mismatch between production capacity and the need for urgent reforms, particularly in the areas of transport and defense.

Felix Pakleppa, CEO of the German Construction Industry Association, says the sector is underutilized and that even with the financial package in place, there is not enough work to absorb these resources.

“Civil construction can begin immediately, as there is expertise and technical capacity to carry out these projects. What is missing are the orders,” Pakleppa pointed out.

The fact that 85% of the time dedicated to the construction of highways is spent solely on planning shows that bureaucracy is one of the biggest obstacles to the advancement of these projects.

Bureaucracy: the biggest obstacle to development

It is no secret that the project approval process in Germany is extremely slow.

Studies show that bureaucracy is costing the German economy up to 146 billion euros per year, an amount that could be invested in concrete improvements if authorization processes were faster and more efficient.

Construction companies, for example, have to deal with a tangle of legal requirements, such as documentation verifications and verifications, data protection requirements and other factors that delay projects.

Reducing this time and simplifying bureaucracy would be an essential step towards freeing up the resources needed for these infrastructure projects.

Shortage of skilled labor could worsen the situation

Another growing challenge for Germany is the lack of skilled labor.

German society is aging, and as the demand for new workers grows, many experienced workers are retiring.

The shortage of qualified professionals has been observed for years, but the pressure has intensified with the economic recession and the increase in temporary vacancies.

It is estimated that by 2040 Germany will need to import around 288 foreign workers annually to fill this gap, not to mention the demand generated by the expansion of infrastructure and defense projects.

According to Veronika Grimm, the lack of qualified labor can lead to price inflation, as companies may increase the cost of their services due to staff shortages.

If the German government does not find effective ways to attract more skilled workers or improve domestic production capacity, prices could rise further, making it difficult to carry out infrastructure works.

What is missing for Germany to harness the potential of its finances?

Germany's infrastructure, once considered one of the most advanced in the world, is now in a critical state.

about 5 thousand put on are in very poor condition and need urgent renovations, while Deutsche Bahn, the national railway company, is planning the largest renovation project in its history, with the refurbishment of 4 kilometers of track in several phases.

However, projections indicate that even with the 500 billion euros available, this amount may be insufficient to cover the country's total infrastructure needs, which are estimated at more than 900 billion euros by 2035.

The big challenge now is to find a way to efficiently apply these funds, considering the limitations of bureaucracy, the shortage of qualified workers and the high costs driven by the global crisis.

The question remains: do you think Germany will be able to overcome these obstacles and make its billions of euros really worth it?