Geywitz stops funding for climate-friendly new builds
A funding program for climate-friendly new builds is surprisingly ended by the German government: The money has run out. The construction industry and CDU sharply criticize the measure. The KFN program is set to restart in February, when the 2024 budget is approved.
The Federal Building Ministry has stopped funding for climate-friendly new builds. As of 14 December, "no new applications for the KFN program can be submitted to the Kreditanstalt für Wiederaufbau (KfW) due to the funds being exhausted", the ministry announced.
The abbreviation KFN stands for the funding program for climate-friendly new builds, which the German government launched in the spring. "From March to December of this year, we funded around 46,000 apartments with the KFN program and triggered investments of around 17 billion euros," said Federal Building Minister Klara Geywitz according to the press release. The funding pot was empty after just three months, "so we had to increase it to almost two billion euros".
This money is now also gone. According to the Handelsblatt, there has recently been an unexpectedly high demand. As recently as November, Geywitz told the newspaper that funding for new construction this year was secured.
The KFN program was aimed at private individuals as well as companies and investors. The Central Association of the German Construction Industry criticized the news as coming "completely out of the blue", as Managing Director Felix Pakleppa said. "Nothing harms an investment sector like the construction industry more than unclear or constantly changing framework conditions. We experienced the funding chaos in 2022 and we are still feeling the consequences today."
"A slap in the face for builders"
Sharp criticism also came from the CDU. The funding freeze will "finally destroy the last shred of trust in this government", said Jan-Marco Luczak, spokesperson for construction policy for the CDU/CSU parliamentary group. "This is a slap in the face for companies and private builders."
Luczak accused the Ampel of explicitly emphasizing after the Federal Constitutional Court's budget ruling that the KFN programme was exempt from the budget freeze. This had created the expectation that the program funds would be sufficient.
The construction industry is counting on the KFN program being continued next year: "As soon as the 2024 federal budget comes back into force, it should be possible again and we expect that," said Pakleppa. Geywitz had already announced this: "New applications can be submitted as soon as the 2024 federal budget comes into force," she said. According to current plans, the budget for the coming year is to be passed in the Bundestag in January and probably in the Bundesrat on February 2.
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The sudden cessation of funding for climate-friendly new builds has led to criticism from various quarters. This is evident in the statement made by Jan-Marco Luczak, spokesperson for construction policy for the CDU/CSU parliamentary group, who described it as a "slap in the face for companies and private builders". The Federal Ministry for Building and Housing, led by Klara Geywitz, had previously announced that funding for the KFN program would resume in February, after the approval of the 2024 budget. However, the budgetary policy has led to the exhaustion of funds for this program, making it impossible for new applications to be submitted to KfW as of 14 December.
Source: www.ntv.de
