In spite of the financial turmoil shaking up the federal budget, the Commissioner for Eastern Germany, Carsten Schneider, has reassured Lusatian municipalities that the funding for their structural developments stays untouched. This security is backed by the Coal Phase-out Act, ensuring that the promised 40 billion euros for coal regions remains intact, even amidst the government's temporary blockage of funds for future years.
Schneider spoke at the Lusatia Round Table in Spremberg, hinting at legal certainty for municipal projects and federal investments like railway expansion and research areas with the upcoming supplementary budget. The SPD politician exhibited confidence in the passing of this supplementary budget.
Local authorities in Saxony and Brandenburg had expressed concerns about the promised structural funding's stability due to the Constitutional Court's nullification of a 60-billion-euro reallocation from the 2021 budget, intended for climate protection and the country's economic modernization. Nevertheless, Schneider's words have put their minds at ease, as the Coal Phase-out Act safeguards the future of their funding.
The traffic light coalition aims to utilize the debt brake exemption this year, with Finance Minister Christian Lindner planning to submit a supplementary budget to the cabinet next week in consultation with Chancellor Olaf Scholz and Vice-Chancellor Robert Habeck.
Gathering steam from Schneider's statements, Lusatian municipalities can breathe with ease, knowing their expenditures for climate protection projects and economic modernization receive legal certainty. They can expect support not only from their regional governments but also ample federal funding options, aiding in ventures such as railway expansion and research areas.
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Enrichment Insights:
The Lusatia region benefits from significant investments in its transformation from coal to renewable energy sources. For instance, the Schwarze Pumpe industrial park receives support from the federal government and the state of Saxony. This funding contributes to developing semiconductor solutions, improving sustainable construction concepts, and establishing research campuses in greenhouse gas-neutral recycling management.
The projects further receive funding from the EU, with institutions like the European Investment Bank (EIB) playing a crucial role. For example, the EIB has pledged a €150 million contribution to the 2038 Lusatia Program, which aims to minimize the social and economic impacts of lignite phase-out while assisting in the transition to climate neutrality.
Regardless of the budget ruling challenges and precautionary finance blockages, the legal bases for the funding in Lusatia remain sound, and the commitment of both the federal and state governments ensures the continuity of the projects. The EIB also provides technical assistance and advisory support to affected regions, helping strengthen institutional frameworks, enhance project management, and prepare grant applications.
