Germany is using a massive fund for the wrong purposes and it risks providing just a minor boost to the struggling economy, experts warned Wednesday, as they cut their 2026 growth forecast.

The influential council of economic advisers forecast GDP growth of just 0.9 percent for next year, down from a previous prediction of one percent, and below a government estimate of 1.3 percent.

Chancellor Friedrich Merz's coalition has established the 500-billion-euro ($580-billion) fund as part of its efforts to reboot Europe's biggest economy after two years of recession.

The money is intended to be spent over 12 years to overhaul the country's creaking infrastructure, from crumbling bridges to ageing trains, and for projects to slash greenhouse gas emissions.

There had been hopes the extra spen

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