Financial expert warns of standstill in the construction industry without climate billions

Financial expert warns of standstill in the construction industry without climate billions

According to a report by www.n-tv.de, warns the construction industry of a standstill without billions in climate change. The Federal Constitutional Court ruling on the climate billions could finally push the federal government's goal of building 400,000 new apartments per year into the distance. The construction industry is already struggling with a slump in orders. The situation in the construction industry was already dismal before the verdict, and the industry paints a bleak picture without climate and transformation funds.

Federal Finance Minister Christian Lindner from the FDP has called for a greater focus on effective spending, as the court in Karlsruhe had declared the reallocation of loan authorizations amounting to 60 billion euros to the Climate and Transformation Fund (KTF) to be irregular. Building permits are falling, incoming orders are falling, and the number of cancellations of orders that have already been placed is increasing. The federal government's goal of building 400,000 new apartments per year is becoming a long way off. The chairwoman of the Conference of Construction Ministers, Nicole Razavi from the CDU, and the managing director of the Main Association of the German Construction Industry, Tim Oliver Müller, fear devastating consequences.

The Federal Chamber of Architects appeals to politicians to concentrate on the “most important and effective measures in terms of climate policy”. These include the renovation of inefficient buildings, climate adaptation in municipalities and the heat transition in boiler rooms.

The effects of these developments could be diverse. In the event of a standstill or decline in housing construction, this could lead to a worsening housing shortage and an increase in rental prices. Additionally, a decline in construction could have a negative impact on employment and overall economic activity. Investors and companies in the construction sector could see a drop in sales. All of these scenarios could affect overall economic development and lead to changes in the financial market.

It remains to be seen how politicians will react to these developments and what specific measures will be taken to support the construction industry. Providing sufficient funds for housing construction and promoting climate-friendly construction projects could be important steps to stabilize the construction industry and avoid future shortages.