Commissioner for Eastern Europe: Federal funds for structural change secure
Despite the federal budget crisis, the financial resources for structural development in Lusatia are secure, according to the Commissioner for Eastern Germany, Carsten Schneider. The funding remains unaffected and is legally secured by the Coal Phase-out Act, Schneider said on Friday at a meeting of the Lusatia Round Table in Spremberg (Spree-Neiße). With the supplementary budget still to be decided, there would then be legal certainty for the state's expenditure on municipal projects as well as financial resources from the federal government, for example for the expansion of railways and research areas. The SPD politician was confident that the supplementary budget would be passed.
With these statements, the Federal Government Commissioner for Eastern Germany was reacting to the concerns of the Lusatian municipalities in Saxony and Brandenburg, who see the promised 40 billion euros in structural funds in the coal regions at risk due to the precautionary blocking of financial commitments for the coming years by the federal government. The Federal Constitutional Court 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.
Due to the Karlsruhe budget ruling, the traffic light coalition wants to make use of the debt brake exemption for this year. Federal Finance Minister Christian Lindner (FDP) intends to submit a supplementary budget to the cabinet next week in consultation with Chancellor Olaf Scholz (SPD) and Vice-Chancellor Robert Habeck (Greens).
The Lusatian municipalities in Saxony and Brandenburg, concerned about the security of their promised structural funds for climate protection and modernizing the economy, were reassured by Carsten Schneider, the Federal Government Commissioner for Eastern Germany. He assured them that the financial resources, including funds for railway expansion and research areas, are secure due to the Coal Phase-out Act. Moreover, the supplementary budget, which is yet to be decided, will provide legal certainty for municipal projects and federal funding, thus alleviating their concerns about potential budget crisis effects on Mining and Energy sectors in the context of Climate change.
Source: www.dpa.com
