German universities and research organizations will receive an €18-billion (US$25-billion) windfall over the next decade, after Chancellor Angela Merkel and the prime ministers of the country's 16 states agreed on 4 June to finance the package.

In April, the weak economy had made some states waver in their intention to contribute to the proposed programmes, and Peer Steinbrück, Germany's finance minister, had suggested that a final decision might need to be postponed until after September's federal parliamentary elections.

The funding extends three initiatives — intended to strengthen research budgets, encourage university competition and prepare for a rise in student numbers — which together account for the largest single investment in science and higher education in Germany's post-war history.