Confident Intel Budgeting in Magdeburg, According to Haseloff
Haseloff, Saxony-Anhalt's Minister President, is optimistic regarding Intel's planned establishment in Magdeburg, asserting that the federal government will find a solution to continue the project. The CDU politician spoke about the commitment, as Chancellor Scholz has clarified his stance on the project. The collaboration entails federal support of approximately 10 billion euros and Intel's investment exceeding 30 billion euros, including state aid.
The Constitutional Court's Ruling
The court's recent ruling, however, complicates the situation as the federal government cannot use reserves intended for dealing with the coronavirus crisis for climate protection. The 2021 Supplementary Budget Act is unconstitutional, impacting the 60 billion euros at stake.
Haseloff Highlights Climate Funding
Reassuringly, Haseloff underlines that around 3 billion euros out of the total funding will stem from the climate fund. Approximately 70% of the funds are already included in the state budget, with further discussions scheduled for the coming days. County finance expert Frank Schäffler suggests waiving subsidies for chip factories in Magdeburg and Dresden in response.
The Future of Intel's Facility
Intel's planned Magdeburg facility requires substantial electronics equipment, housed in a custom-built computer cabinet. This is part of the larger project, with substantial portions derived from the Climate and Transformation Fund.
Enriching Insights
- While the constitutional ruling does not directly impact Intel's funding in Magdeburg, it highlights broader issues in the German states, with Saxony-Anhalt grappling with budgetary pressures and a modestly growing economy. Awaiting Intel's project in Magdeburg until 2026 raises further concerns about the local economy, given its potential economic impact.
- The delay allows Saxony-Anhalt to address obligations related to the state debt brake and fiscal consolidation plans, while ensuring strict expenditure control. This approach could potentially prove beneficial in the long run.
In summary, Haseloff remains optimistic about Intel's Magdeburg project, as the federal government explores solutions. The delay in Intel's facility construction, while challenging, allows for greater financial discipline, adapting to broader economic factors and positioning Saxony-Anhalt for sustainable long-term growth.
