Abstract
The German economy has been weakening for several years. The federal government has therefore announced that it will use the special infrastructure fund to stimulate the economy. There are now fears that the special fund will be used primarily for short-term election gifts and to plug holes in the budget, rather than for structural investments and necessary local government reforms. What is needed is a shift away from symptom-based fiscal policy towards genuine structural reforms – targeted investments in infrastructure maintenance, education, research and relief from taxes and social security contributions. This is the only way to strengthen the quality of the business location in the long term and secure long-term growth.