60 billion ruling: Fear of clear-cutting in housing policy
The situation in the construction industry is bleak and was so even before the Federal Constitutional Court's ruling on the federal climate and transformation fund. The construction ministers of the federal states are currently meeting in Baden-Baden to discuss ways out. "It's doubly bitter: as the residential construction market is already at rock bottom, there is no longer any impact. However, the chance of reoccupancy is getting smaller and smaller," Tim Oliver Müller, Managing Director of the Federation of the German Construction Industry, told dpa. The federal government had done too little to react to the crisis.
The ruling by the court in Karlsruhe had declared a reallocation of credit authorizations amounting to 60 billion euros to the Climate and Transformation Fund (KTF) to be illegal. In response, Federal Finance Minister Christian Lindner (FDP) called for a stronger focus on effective spending. However, it is not yet clear what this could be, particularly with regard to housing construction.
Even regardless of the Karlsruhe decision and the consequences of the resulting quake, the situation is difficult according to the industry association. Building permits are falling, incoming orders are declining, and the number of cancellations of orders already placed is increasing. The German government's target of building 400,000 new homes per year is receding into the distance and could even fall below the 100,000 mark by 2025.
The chairwoman of the Conference of Building Ministers, Nicole Razavi (CDU), head of department in Baden-Württemberg, expects devastating consequences if further cuts are necessary. She and Müller fear that the few planned measures, such as the subsidized purchase and renovation of old houses by young families, will now be put up for discussion.
The Federal Building Ministry has not yet been able to spell out the consequences in detail, but believes that home ownership financing for families (WEF) and climate-friendly new builds (KFN) will be secured at least this year, with almost two billion euros planned for this in the current year. According to a spokesperson, social housing construction is also generally excluded and will be financed via the normal budget. It also said: "Commitments already made will be honored."
A sword of Damocles hangs over the remaining expenditure: 1.1 billion euros in costs have been budgeted for the WEF and KFN next year. The renovation of sports facilities, the adaptation of urban spaces to climate change and financial aid for municipal heat planning could also be affected.
The Federal Chamber of Architects is calling on politicians to focus on the "most important and effective measures in terms of climate policy". These include the refurbishment of inefficient buildings, where more CO2 can be saved than through the promotion of new construction. Climate adaptation in municipalities and the heating transition in boiler rooms should also not be neglected.
The ongoing discussion among federal states' construction ministers highlights the impact of the Federal Constitutional Court's ruling on the housing policy, particularly its impact on reoccupancy opportunities. Despite the challenging market conditions, effective housing policies, such as subsidized purchases of old houses for young families, are at risk of being reassessed due to the financial implications of the ruling. The chairwoman of the Conference of Building Ministers, Nicole Razavi, expresses concerns about potential cuts, which could negatively impact various housing initiatives and policies, including home ownership financing for families and climate-friendly new builds.
Source: www.dpa.com
