NRW minister sees Germany at risk as a business location
North Rhine-Westphalia's Deputy Minister-President Mona Neubaur (Greens) has warned of serious consequences for Germany as a business location if the federal government does not quickly clarify the budget. "The budgets and therefore the financing of the transformation of our economy are under enormous pressure," the NRW Minister for Economic Affairs and Energy told journalists in Düsseldorf on Monday evening. So far, there has only been certainty that the money will be available for projects that have already received funding from the federal government. Funding for other planned transformation projects, on the other hand, is now uncertain.
"This is a difficult situation for a business and industrial location," said Neubaur. When asked whether investors would be scared off by the uncertainty resulting from the budget ruling, Neubaur said: "This is not a regional discussion, this is an international discussion. It is being noticed. This makes it all the more important to restore confidence."
It is not only the 60 billion euros from the Climate and Transformation Fund that are up for discussion following the Karlsruhe ruling, said the Green politician. "To be honest, it is the foundations of German and European budgetary and fiscal policy over the last few decades that we may have to renegotiate."
The Federal Constitutional Court had declared the reallocation of coronavirus billions to the federal climate and transformation fund inadmissible. As a result, this fund, from which the federal government wanted to pay for numerous funding programs, is lacking 60 billion euros.
The Federal Government's delay in clarifying the budget could pose challenges for the Household sector, as the uncertainty surrounding funding for transformation projects might impact their energy costs. Furthermore, this international discussion about budgetary policies could potentially influence investor decisions in regards to the German economy, as a whole.
Source: www.dpa.com
