Finance Senator Andreas Dressel of Hamburg, representing the SPD, has urged for a dedicated fund for climate transformation and protection to be established in the German Constitution. This call comes following the Karlsruhe budget ruling, which allegedly benefits the federal government at the expense of funding for transformation and climate change projects in state governments, causing a substantial financial strain.
Dressel revealed that 60% of the Climate and Transformation Fund projects are designated for eastern Germany, aiming to drive green initiatives and foster job creation in the region. Caught in a financial crunch, state governments are preparing to enter wage talks, which Dressel suggested may be affected by these budgetary limitations.
The FDP, a German political party, has proposed the decoupling of subsidies for green assets, like wind farms, from the budget process to ensure more predictability and sustainability. However, the SPD and its supporters voice concerns over the current budgetary crisis, advocating for addressing this emergency first before committing substantial funds to climate protection initiatives.
In the possible final round of negotiations, set to commence on December 7, Dressel hinted at making a wage offer to strike a balance. Alarmed by the financial constraints due to the budget crisis, Dressel emphasized the need to explain these limitations to union representatives during the wage talks.
