Overview

• Germany's finance ministers unanimously approved the Königsteiner Schlüssel formula to divide €100 billion in infrastructure funds among the Länder.
• Nordrhein-Westfalen will receive the largest share at €21 billion, while Schleswig-Holstein is set to receive €3.5 billion.
• The agreement includes a new joint borrowing limit for the Länder of up to 0.35% of GDP, approximately €15 billion this year.
• Next steps involve minister-president discussions and Bundestag debates on implementation legislation ahead of the summer break.
• The constitutional changes mandate reporting and federal oversight to ensure funds are used appropriately for infrastructure and climate initiatives.