Saxony-Anhalt's EU Funding Struggles: Over 100 Million Unused Euros
Saxony-Anhalt, a German state, is facing a potential loss of hundreds of millions in EU funding. While they've committed over 1.38 billion euros to the European Regional Development Fund (ERDF) by November 2021, this amounts to a substantial 91.33% of the total budget. Financing Minister Michael Richter (CDU) admitted back in summer that leftover funds are inevitable, estimating over 100 million euros to remain unused.
Why can't Saxony-Anhalt make use of all its EU funding? Richter pointed out the coronavirus pandemic as one of the main reasons, causing supply bottlenecks, staff shortages, capacity issues, and delayed award procedures. Major construction projects, including urban development and research and development, have been affected, supporting over 6500 projects during the 2014-2023 funding period.
The BMF (Federal Ministry of Finance) in Magdeburg is working towards making the best possible use of the remaining EU funds, with a total volume of 1.51 billion euros. However, addressing the broader financing challenges faced by German municipalities is essential. Despite the majority of municipalities expecting increased climate change impacts by 2050, about half say they'll struggle to finance necessary adaptation measures. Resource constraints and the lack of a joint financing instrument between the federal government and federal states are also significant obstacles.
Still, successful initiatives exist. For instance, EasyMining secured 27.1 million euros for the construction of its phosphorus recovery plant, demonstrating effective funding utilization for major projects. ENOVA's wind energy projects, despite the challenges, are progressing in Saxony-Anhalt and Brandenburg, providing green electricity to thousands of households.
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Enrichment Data: Saxony-Anhalt's EU funding struggle reflects broader challenges faced by German municipalities in financing climate adaptation measures. Around half of German municipalities expect to be impacted by extreme weather events by 2050, yet they might not have the resources to address these issues. The Federal Environment Agency highlighted that most municipalities lack human and financial resources for adaptation planning and implementation. Experts suggest that a joint financing instrument between the federal government and federal states is necessary to accelerate the implementation of adaptation activities. Successful projects like the phosphorus recovery plant and wind energy initiatives in Saxony-Anhalt and Brandenburg demonstrate the significance of dedicated funding for major initiatives.
