Financial expert Habeck wants to continue funding economic projects despite the budget ruling

Future of the Climate and Transformation Fund after the budget verdict

How www.kurier.de reports, Habeck wants to stick to the funding of economic projects worth billions after the budget ruling. The Federal Constitutional Court had declared a reallocation of 60 billion euros in the 2021 budget to be unconstitutional. The federal government is not allowed to use funds intended to combat the Corona crisis for climate protection. This could have a major impact on the Climate and Transformation Fund, which finances programs for more climate protection, the establishment of future technologies and the development towards a climate-neutral economy.
The Federal Constitutional Court's decision will have profound effects on the financing of climate protection and environmental projects. Since the Transformation Fund is an important part of climate policy, uncertainty about financing will potentially lead to a slowdown or even a halt in projects aimed at a climate-neutral economy.
Investors and companies that rely heavily on funding from the transformation fund face an uncertain future, as this creates great uncertainty regarding the financing of future-oriented technologies and climate protection measures. This could have a negative impact on the market for climate-friendly innovations and the development towards a sustainable economy.