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Budget freeze affects two construction projects in Berlin

According to department head Klara Geywitz (SPD), "two smaller programs" are affected by the provisional budget freeze at the Federal Ministry of Housing, Urban Development and Building. The first is a program for age-appropriate home conversions, in which 25 million euros in funding is still...

Construction cranes stand on a building site in a city center. Photo.aussiedlerbote.de
Construction cranes stand on a building site in a city center. Photo.aussiedlerbote.de

Living - Budget freeze affects two construction projects in Berlin

According to department head Klara Geywitz (SPD), "two smaller programs" are affected by the provisional budget freeze at the Federal Ministry of Housing, Urban Development and Building. The first is a program for age-appropriate home conversions, in which 25 million euros in funding is still available. On the other hand, a program to promote the founding of cooperatives is affected, which involves a sum of just under two million euros. Geywitz said this on Tuesday on the fringes of the conference of federal and state spatial development ministers in Cottbus.

However, other programs would continue to receive funding, the Federal Building Minister emphasized. "It was important to me that the funding programs for the construction sector in particular have now also been removed from the funding freeze this year, so that house builders and people who want to build large and multi-family houses with the help of the federal government can continue to receive the low-interest programs."

Following the budget ruling, the Federal Ministry of Finance imposed a budget freeze, according to which no new financial commitments linked to payments for the years from 2024 onwards may currently be made.

At the Conference of Regional Planning Ministers, the 16 construction ministers of the federal states discuss the goals for equal living conditions in urban and rural areas with the federal government. The main issue is how to deal with spatial conflicts in the future against the backdrop of new industrial settlements, the expansion of renewable energies, rail and road expansion and the consideration of natural areas. According to Geywitz, individual programs that are subject to budgetary restrictions will also be presented at the conference.

Read also:

  1. The budget freeze at the Federal Ministry has impacted two smaller construction projects in Berlin, as revealed by department head Klara Geywitz from the SPD.
  2. Geywitz mentioned that a program for age-appropriate home conversions, with 25 million euros in funding still available, is affected.
  3. Additionally, a program to promote cooperative founding, with a budget of almost two million euros, is also impacted by the budget freeze.
  4. In Cottbus, at the conference of federal and state spatial development ministers, Geywitz discussed the ongoing budgetary restrictions on certain programs.
  5. Despite the budget freeze, Geywitz assured that funding programs in the construction sector have been exempted to assist house builders and multi-unit home builders.
  6. The Conference of Regional Planning Ministers focuses on encouraging equal living conditions in urban and rural areas, with urban development, renewable energy expansion, and infrastructure expansion being key topics.
  7. In light of the budget freeze, Geywitz plans to present impacted individual programs at the conference, addressing concerns related to energy, real estate, and household budgets.
  8. As Germany strives to decrease its carbon footprint and promote energy efficiency, crucial discussions around the impact of budgetary restrictions on construction projects and consumers' households are essential in cities like Berlin and Cottbus.

Source: www.stern.de

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