Economic policy - State parliament: Emergency loan for Northvolt possible
The scientific service of the Schleswig-Holstein state parliament considers a state subsidy for the establishment of the Northvolt battery factory using funds from the Ukraine emergency loan to be feasible. However, the connection would have to be well justified. Nevertheless, constitutional risks remain. This can be seen in a reprint from the state parliament.
The state wants to make up to 137 million euros available to Northvolt for the construction of the factory near Heide from authorizations from the Ukraine emergency loan. According to a resolution passed by the state parliament, these funds can be used for investments to accelerate the energy transition and achieve energy sovereignty, which is essential in the wake of the war of aggression against Ukraine. Following the Federal Constitutional Court's ruling on the federal government's Second Supplementary Budget Act 2021, the state parliament identified an extraordinary emergency situation for 2023.
In the summary of the 22-page presentation, the scientific service concludes that subsidizing the Northvolt settlement with the funds from the Ukraine emergency loan is possible in principle. However, the ruling of the Federal Constitutional Court results in increased requirements for demonstrating the factual connection. "Whether the state constitutional court would come to the conclusion that the resolutions ... have the required degree of justification cannot be predicted with certainty." A constitutional risk also remains, as it is not clear from the resolution to what extent credit authorizations will be created for 2023. There are also arguments that a supplementary budget may be necessary for the required credit authorizations.
Finance Minister Monika Heinold (Greens) responded to the scientific service's assessment by referring to the current fourth year of crisis. "It's good that we can work with emergency loans." Energy sovereignty is one of the goals that must be achieved. "The establishment of Northvolt is a central building block for this." Like the Federal Constitutional Court, the scientific service of the state parliament has also made it clear that this causal link between the measure and crisis management must be clearly justified. "We will of course take this into account," said Heinold.
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- Despite the feasibility of using Ukraine emergency loan funds for a state subsidy to establish Northvolt's battery factory in Schleswig-Holstein, the Federal Constitutional Court's ruling introduces increased requirements for demonstrating the factual connection to minimize constitutional risks.
- The German state parliament has passed a resolution to allocate up to 137 million euros from Ukraine emergency loan authorizations for investments aimed at accelerating the energy transition and achieving energy sovereignty, with Northvolt's battery factory in Heide serving as a central building block.
- Energy companies like Northvolt play a crucial role in Germany's economic policy, especially during challenging times like the ongoing fourth year of crisis, as their investments can contribute to the country's energy sovereignty objectives.
- In a recent presentation, the scientific service of Schleswig-Holstein's state parliament suggested that subsidizing Northvolt's settlement with Ukraine emergency loan funds is possible in principle, but the requirements for justifying the connection have become stricter due to the Federal Constitutional Court's ruling.
- German state governments, including Schleswig-Holstein, collaborate with companies like Northvolt in their efforts to capitalize on opportunities from the emerging battery sector, which will be essential for Germany's successful energy transition and enhanced energy independence from foreign suppliers, such as Russia.
Source: www.stern.de
