Climate and transformation fund: Financial experts warn of significant damage for East Germany

Climate and transformation fund: Financial experts warn of significant damage for East Germany

According to a report by www.weser-kurier.de, the Parliamentary State Secretary in the Federal Ministry of Economics, Michael Kellner (Greens), states that the budget ruling of the Federal Constitutional Court particularly affects East Germany. If the missing 60 billion euros for the climate and transformation fund are not raised elsewhere, the East German economy is at risk of significant damage.

The planned investments in German industry of 80 billion euros will largely be in Eastern Germany. Without government support, investments in chip factories in Dresden and Magdeburg as well as the reconstruction of the solar industry in East Germany could be at risk.

The FDP finance and budget expert Frank Schäffler, on the other hand, is calling for subsidies to be waived for the chip factories in Magdeburg and Dresden, as these are not structurally weak areas.

DIW expert Claudia Kemfert believes that suspending the debt brake is justified by the Federal Constitutional Court's ruling and recommends an examination of the expenditure of the climate and transformation fund. She emphasizes the need for future investments in the areas of electromobility, rail transport, digitalization, storage and building energy in view of the climate crisis and economic transformation.

The lack of support from the Climate and Transformation Fund could lead to a standstill of important investments in East Germany, which could lead to job losses and economic damage in the long term. It is therefore crucial that alternative financing options are found to secure these important projects.

The debate about subsidies for chip factories also shows the disagreement and ambiguity in politics and the need to develop clear and long-term financing strategies for future-oriented technologies.