Budget: Habeck wants to stick to funding for large projects

After the budget verdict, Federal Minister of Economics Robert Habeck wants to continue funding economic projects worth billions. The Green politician also sees a solidarity with the states. “There is a joint search to find ways now,” said Habeck after discussions with the federal and state economics and energy ministers in Berlin. The projects linked to the climate and transformation fund affect the “economic core of Germany”.

The Federal Association of Consumer Organizations (VZBV) is calling on politicians to focus more on the concerns of consumers in Germany. In the discussions in the current federal budget crisis, one has the feeling that it is all about infrastructure projects such as a new chip factory, said VZBV boss Ramona Pop at the German Consumer Day 2023 in Berlin. But consumers contribute half of the country’s economic power in terms of gross domestic product. “And if consumers are uncertain or feel overwhelmed, then they hold back and then not much is gained for the economy,” warned Pop.

Bavaria’s department head Hubert Aiwanger (Free Voters), as chairman of the Conference of Economic Ministers, called projects that should be financed through this fund “indispensable”. This will, for example, be used to finance programs for more climate protection and the development towards a climate-neutral economy, for example in the steel industry. It is also about the establishment of technologies such as semiconductors and battery technology.

“A solution must be found quickly”

With regard to companies, Habeck said that trust must now be created that all projects that were developed with the climate and transformation fund should also be made possible. “Through the climate transformation fund in Germany, an ecosystem of change has been established, an attitude in companies to invest in the future.” The minister made it clear that a solution must now be found quickly to compensate for the billion-dollar gap.

There are various suggestions on the table. The federal government is working intensively on solutions. The Vice Chancellor did not want to say which one he preferred. He had the impression that everyone in the federal government saw the problem in the same way and that everyone was working together to find solutions.

With regard to the Union as the largest opposition party in the Bundestag, Habeck said it would be good if all democratic forces found a solution.

Loss of growth in 2024 of a good half a percentage point

With regard to the state gas and electricity price brakes, Habeck made it clear in view of the judgment that he did not know whether these could be extended. Federal Finance Minister Christian Lindner (FDP) had said that the Economic Stabilization Fund (WSF) would be closed on December 31st – this will be used to finance the price brakes. One day after the verdict, the Bundestag decided to extend the price cap regulation until March 31st.

Habeck further said that by eliminating the 60 billion in the KTF, the federal government expects a loss of growth of a good half a percentage point next year. The substance of Germany’s economy must now be defended. According to the autumn forecast, the federal government expects economic output to decline by 0.4 percent this year. Growth of 1.3 percent is expected so far next year.