Karlsruhe ruling with consequences worth billions for Bavaria
The Federal Constitutional Court's ruling on the federal budget also has direct consequences for Bavaria. "The funding problems in Berlin are also having a massive impact on Bavaria's economy. At present, the federal government has yet to issue funding decisions amounting to 1.3 billion euros for projects in Bavaria. The federal government must therefore find a solution as quickly as possible to secure funding," said Minister of Economic Affairs Hubert Aiwanger (Free Voters) on Tuesday after a cabinet meeting in Munich.
In total, only 636 million euros of the almost two billion euros in federal co-financing had been definitively confirmed. In this context, Aiwanger spoke of major industrial and energy policy decisions that would be affected: Semiconductors, microelectronics, hydrogen, battery cell and photovoltaic module production, climate protection contracts. "Germany cannot afford to drag its feet on any of these issues. Companies face global competition and urgently need planning security," he said.
"We hope, and according to the information currently available, that the promised projects will also be financed," emphasized Aiwanger. The hydrogen issue in particular is now affected, as the funding decisions have not yet been issued and it is therefore unclear what will happen next. However, he assumes that the federal government will "now get this sorted out in the course of the new budget legislation" and that the promised money will then also arrive in Bavaria.
The forecast for the federal funds to stabilize electricity costs, which according to Aiwanger amount to around 30 billion euros nationwide, is more difficult. It is still completely unclear how things will proceed here.
Science Minister Markus Blume (CSU) added that the areas affecting his ministry were also "comparatively highly affected". However, he did not give any specific figures. "In many areas, it is not yet possible to estimate what is actually in the fire." This creates a great deal of uncertainty.
With regard to the cultural sector, Blume said that the situation here is even more complicated than for research projects that are jointly funded by the federal and state governments. For example, hardship grants for high energy costs have currently been stopped, which is now causing problems for cultural institutions due to the relatively long application process, as it is unclear whether the money will be paid out in the fourth quarter. Funding for necessary investments in the cultural sector has also been stopped for the time being. "For the year 2023 alone, these are roughly commitments from the federal government in the order of 70 million euros," said Blume.
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 the modernization of the economy. At the same time, the judges ruled that the state was not allowed to set aside emergency loans for later years. However, this is exactly what the federal government has done in special pots for the energy price brakes, among other things - which is now tearing additional holes in the budget.
The Cabinet in Munich is urgently seeking a solution to secure the remaining 1.3 billion euros in funding for Bavarian projects, which are crucial for sectors like semiconductors and hydrogen production. Despite the uncertainty, Science Minister Blume hopes that the promised projects will be financed in the new budget legislation. Meanwhile, cultural institutions are facing difficulties due to halted hardship grants and funding for necessary investments, with commitments from the federal government totaling approximately 70 million euros for 2023 alone.
Source: www.dpa.com
