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After the budget freeze: municipalities are concerned about development

Due to the federal budget crisis, many projects are being put to the test and spending is to be cut. The municipalities in Lusatia are concerned about this development. Is structural change at risk?

Euro banknotes lie on a table..aussiedlerbote.de
Euro banknotes lie on a table..aussiedlerbote.de

After the budget freeze: municipalities are concerned about development

The municipalities in Lusatia are concerned about the precautionary blocking of financial commitments for the coming years by the federal government. "We fear that this budget freeze will mean that projects cannot be implemented or can only be implemented with a delay," said Christine Herntier, spokesperson for the Lusatia Round Table for Brandenburg's municipalities, to the German Press Agency. Even if the 40 billion euros promised by the federal government for structural change in the coal regions were secure, partners would still be needed for implementation. "If they are unable to act, we have a problem," said Herntier.

This Friday, the Great Lusatia Round Table will meet with representatives from Saxony and Brandenburg in Spremberg (Spree-Neiße). The Commissioner for Eastern Germany, Carsten Schneider, will also be attending the meeting.

The background to the municipalities' concerns is a decision by the Federal Constitutional Court. It had declared the reallocation of 60 billion euros in the 2021 budget null and void. The money had been approved as a coronavirus loan, but was subsequently to be used for climate protection and modernizing the economy.

At the same time, the judges ruled that the state may not reserve emergency loans for later years. As a result, further billions of euros for future projects are at risk. As the exact impact on the regular budget is still unclear, the Ministry of Finance has decided to block certain commitments of all ministries for future years in the budget as a precautionary measure.

Saxony and Brandenburg are currently developing differently, explained Herntier. In Brandenburg, the focus is on new settlements and the creation of value chains. Municipal projects, on the other hand, are lagging behind. In Saxony, the opposite is true. "Structural change needs both," said Herntier, who is also the mayor of Spremberg. Transport links to the region are a major problem.

Nevertheless, the non-party politician has one positive message: more people are coming back to the region. Thanks to structural change, it is now easier to find arguments to convince people to stay here, says Herntier. Now, scientific institutions need to move into the area. For example, the four Saxon universities of Dresden, Freiberg, Chemnitz and Zittau-Görlitz are planning to set up institutes in the Schwarze Pumpe industrial park on the Saxon-Brandenburg border at the beginning of next year.

The municipalities in Lusatia are worried that the budget freeze could hinder projects related to mining and energy transition, as these require significant financial commitments. Christine Herntier, a spokesperson for the Lusatia Round Table, highlighted the need for federal and regional partnerships to implement these projects, especially considering the 40 billion euros promised for structural change in coal regions.

As the budget freeze also affects climate change initiatives, the future of these projects is uncertain, particularly with the potential loss of additional billions of euros due to the Federal Constitutional Court's ruling. Municipalities are therefore looking to establish cooperative relationships with Saxony and Brandenburg to overcome these financial challenges and ensure the successful development of their regions.

Source: www.dpa.com

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