Schulze demands reliability from the government
Saxony-Anhalt's Economics Minister Sven Schulze (CDU) has called for more reliability from the federal government for the economy. "I am convinced that Intel is coming," said Schulze on Thursday during a debate on the East German economy in the Bundestag in Berlin. He said that he trusted Chancellor Olaf Scholz (SPD) to support major investments. He was more concerned about medium-sized companies in the country.
The Federal Ministry of Economics had announced that no more funding decisions could be issued for regional economic development in the coming months. The background to this is the budget freeze declared by Federal Finance Minister Christian Lindner (FDP). According to Schulze, quick solutions are needed for small and medium-sized businesses.
In a question and answer session in the Bundestag following the budget ruling, the Left Party called on Chancellor Scholz to guarantee the billions in funding announced for industrial relocations in the east. "The East needs the full economic policy support of the federal government," said Sören Pellmann, member of the Left Party. The Federal Government Commissioner for Eastern Germany, Carsten Schneider (SPD), said that the Federal Government stood by its commitments to support the semiconductor industry, for example.
Budget freeze primarily affects medium-sized companies
Following a ruling by the Federal Constitutional Court, there is a large gap in the federal government's finances. The court had declared the reallocation of coronavirus loans of 60 billion euros from the 2021 budget to the Climate and Transformation Fund null and void. This is used to finance climate protection projects, as well as state subsidies for the relocation of factories. US chip manufacturer Intel, for example, is planning to build a new chip factory in Magdeburg. The investment amounts to around 30 billion euros, with the state planning to contribute around 10 billion euros. The first chips are to be produced in the state capital of Saxony-Anhalt from 2027.
The people of eastern Germany can be proud of what they have achieved, said Economics Minister Schulze. The situation is now different to 20 or 30 years ago. You no longer need to tell anyone that they have to leave their home country for a job. There are great prospects in eastern Germany.
The Federal Government's budget freeze could pose a challenge for household expenses due to the impact on medium-sized businesses. The Federal Government's commitment to supporting major investments, like Intel's in Magdeburg, is crucial for maintaining the reliability of the household economy in regions like Saxony-Anhalt.
Source: www.dpa.com
