Schulze demands clear statement from federal government on Intel settlement
Following the budget ruling by the Federal Constitutional Court, Saxony-Anhalt's Economics Minister Sven Schulze has called for clear statements from the federal government regarding the establishment of the US chip manufacturer Intel in Magdeburg. "I expect the federal government to clarify the financing of all projects that are currently in question relatively quickly - especially for us in Saxony-Anhalt," MDR Saxony-Anhalt quoted the CDU politician as saying on Thursday. Schulze said that the ruling of the Federal Constitutional Court could lead to great uncertainty.
According to reports, at least part of the billions in funding for Intel will come from the Climate and Transformation Fund, which the German government uses to pay for projects to improve climate protection and transform the economy. This fund is affected by the ruling of the Constitutional Court in Karlsruhe on Wednesday. According to the ruling, the federal government may not use money intended to combat the coronavirus crisis for climate protection, which amounts to 60 billion euros. The amendment to the 2021 supplementary budget is unconstitutional.
The federal government wants to support the relocation with around 10 billion euros. According to previous information, Intel is investing more than 30 billion euros, including state aid. The company wants to produce chips in the state capital of Saxony-Anhalt from 2027. Several thousand jobs could be created.
Economics Minister Robert Habeck (Greens) emphasized on Wednesday that all promised commitments would be met. At the same time, it was stated that the federal government was temporarily putting the projects that were to be financed from the Climate and Transformation Fund on hold. This applies to commitment appropriations for 2024 and subsequent years - with the exception of measures to promote energy efficiency and renewable energies in the building sector.
- The budget ruling by the Federal Constitutional Court could potentially impact the electronics sector, specifically the establishment of Intel in Magdeburg, which is a significant project for Saxony-Anhalt's finances.
- The federal government is expected to clarify the financing process for various projects, including Intel's settlement, as the budget amendment related to the Climate and Transformation Fund has been deemed unconstitutional by the Constitutional Court.
- The federal government's support for Intel's relocation includes electronics and technology investments worth around 10 billion euros, part of which comes from the Climate and Transformation Fund.
- The Bundestag and political parties will likely have to review and adjust their processes in light of the Constitutional Court's judgment, as the ruling may affect how taxes and public funds are allocated for projects related to the environment and the economy.
- The Intel settlement and other projects that rely on funding from the Climate and Transformation Fund are facing uncertainty, as the federal government works to ensure compliance with the Constitutional Court's decision, potentially impacting the household budgets of German citizens.
Source: www.dpa.com
