Finance Minister Geue promises a wave of construction: billions for Mecklenburg!

Finance Minister Geue promises a wave of construction: billions for Mecklenburg!

Mecklenburg-Western Pomerania's Finance Minister Heiko Geue recently expressed confidence about an upcoming wave of orders for the construction industry. In a defense of the planned simplifications in the awarding of public contracts to large companies, Geue stated that the construction industry will probably reach its capacity limits. For the years 2026 and 2027, around 350 million euros have already been planned for state and around 400 million euros for federal construction measures. In addition, around 400 million euros from the federal government's special infrastructure fund are to be invested over the next ten years in order to implement urgently needed projects.

Geue emphasized the urgency of implementing simple procedures, digital processes and a modern interpretation of procurement law in order to accelerate the implementation of these measures. However, the Chambers of Industry and Commerce in Rostock and Schwerin expressed concerns that awarding the contract to large companies could particularly disadvantage medium-sized businesses. IHK presidents warned that the awarding of small contract lots was absolutely necessary in terms of economic policy. Geue contradicted these fears and assured that the tendering of individual trades would continue to be a priority.

Investments and infrastructure

Mecklenburg-Western Pomerania can expect an impressive two billion euros from the federal government's special funds over the next twelve years. These financial resources should primarily be used to renovate schools, roads, police stations and administrative buildings. The plans also include the expectation that further funds from the federal government's investment package will be made available for the expansion of the port infrastructure.

In order to make construction projects more efficient, the state plans to keep the level of its own investments high, with a total of 1.7 billion euros for 2026 and 1.6 billion euros for 2027 in the draft budget. These financial conditions could secure a long-lasting wave of orders for the construction industry in Mecklenburg-Western Pomerania, which also plays a prominent role in the current discussion about the opening of tenders.

Federal legislation to accelerate procurement

In addition to the measures at state level, the federal government has passed the draft for a procurement acceleration law to accelerate, simplify and digitalize the awarding of public contracts. Federal Minister of Economics Katherina Reiche emphasized that the focus should be on less bureaucracy and more digitalization. In 2023, 195,000 public contracts with a volume of 125 billion euros have already been awarded, which increases the pressure to optimize processes.

The key objectives of the draft law include increasing the value limit for direct federal awards from 15,000 euros to 50,000 euros as well as specific measures to strengthen the participation of small and medium-sized companies and start-ups. In addition, the burden of proof is reduced in order to reduce the bureaucracy of the procedures. The federal government plans to further explore the measures to make it easier for small companies and to make the entire procurement process more efficient. These reforms are likely to have a significant impact not only on the construction industry but also on other sectors and are part of a comprehensive package of measures to strengthen economic competitiveness.

Combining state and federal initiatives will pave a clear path to effectively address construction challenges and strengthen the construction industry for years to come.