Federal budget - Budget freeze: Saxony's companies lack 50 million euros
The federal budget freeze has had its first consequences for Saxony. Around a third of the funding planned for the commercial sector this year has been stopped by the federal government and cannot be used for the time being, the Ministry of Economic Affairs announced on Monday.
Including co-financing by the state of Saxony, 50 million euros are therefore missing. Sächsische.de first reported on this. The ministry hopes that funding will be resumed in 2024 - when the federal budget comes into force.
According to the ministry, companies in the manufacturing sector as well as business-related service providers and tourism companies are affected. Specifically, it is about the so-called GRW funds. GRW stands for "Joint Task for the Improvement of Regional Economic Structures". It is funded equally by the federal government and the state.
The total amount that has been blocked for Saxony in the federal budget is around 25 million euros, it was reported. However, projects that have already been approved are not affected.
The federal government had already planned considerable savings in GRW funding for 2024 in the summer. Following protests from the East German minister presidents, these cuts were withdrawn. A total of 188 million euros were to be made available to Saxony this year to promote business investment.
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The freeze in the federal budget has impacted Dresden's neighboring region, Saxony, significantly. Almost a third of the funding intended for the commercial sector in Saxony this year, as part of the federal budget, has been halted by the government, affecting businesses in the manufacturing sector, service providers, and the tourism industry. This freeze has resulted in a missing budget of 50 million euros for Saxony when considering state co-financing, which is mainly allocated from the GRW funds, a joint endeavor funded equally by the federal government and the state.
Source: www.stern.de
