German advisory panel urges future-focused spending from infrastructure fund

BERLIN, June 9 (Reuters) - An independent advisory panel urged the German government on Tuesday to channel more money from its €500 billion ($578.30 billion) infrastructure fund into future-focused areas, including research and development, digitalisation and energy infrastructure.

In its first report, the Investment and Innovation Advisory Board said such areas should be given priority alongside transport infrastructure.

It said funding could also support civil protection, hospitals, nursing homes and educational facilities.

"Investments are gaining momentum," Finance Minister Lars Klingbeil said on Tuesday, adding that planning, approval and implementation by federal, state and municipal authorities needed to accelerate.

Last year, the fund was supposed to disburse €37.2 billion but instead spent only €24 billion, according to the first monitoring report on the special fund by the finance ministry.

Critics say the government is using some of the financial firepower created to prop up day-to-day spending rather than directing it all towards additional infrastructure to make the country fitter for the future.

The advisory panel also called for stronger efforts to mobilise private capital and greater transparency on funds passed to Germany's states.

It recommended a public project database and quarterly reporting comparing planned and actual spending.

($1 = 0.8646 euros)

(Reporting by Christian Kraemer, writing by Maria Martinez, editing by Friederike Heine)