The CDU views Intel's departure as a manifestation of the venue's vulnerability.
The Union views the extended construction timeline of Intel's chip factory as a reflection of the ineffective economic strategy of the traffic light coalition, and a dispute over how to utilize the released subsidy funding persists within the coalition. Lindner's proposal to fill budget deficits with these funds faces pushback.
According to Julia Klöckner, spokeswoman for the Union's economic policy, the halt in Intel's billion-dollar investment in Magdeburg signifies Germany's dwindling competitiveness as an investment location. Klöckner went on to say, "Our economy isn't growing, projection: zero percent. Thirty percent more corporate bankruptcies in Germany than the previous year. Three hundred billion euros have departed Germany in investments over the past three years." She further stated, "Our country has fallen behind among industrial nations. The traffic light coalition's economic policy has left an economic wasteland: The economic uncertainty is immense, and our location struggles to remain competitive even with subsidies."
Budget deficits and climate fund shortages
Unlike what FDP leader and Finance Minister Christian Lindner advocates, the Greens argue that the released subsidy funding for Intel's chip factory in Magdeburg should remain in the Climate and Transformation Fund (KTF). "It's about four billion euros that will now be available in the Climate and Transformation Fund in 2025. The money comes from the national and European CO2 pricing revenues. It's logical and sensible that these revenues are also used to finance climate protection and transformation," said Green parliamentary vice-president Andreas Audretsch to the newspaper. Lindner's intention is to utilize these funds to fill budget gaps for 2025, but not all planned expenses are covered within the KTF either. There's also a billion-dollar deficit in the KTF.
The municipal utilities association VKU supports the Greens in the budget dispute and urges the federal government to continue investing the unused Intel funds in climate projects. "The released Intel funds should be targeted to address the shortfall in the Climate and Transformation Fund itself. Under no circumstances should they be used to fill budgetary gaps," said VKU CEO Ingbert Liebing to the newspaper. He emphasized, "Funds used for climate protection and energy transition investments should remain budgetary priorities. Because new power plants or heat networks strengthen the location and secure energy supply in the long term, without a doubt, while they also contribute to climate protection."
The European Union might express concern over Germany's economic situation, given the halt in Intel's investment and the dwindling competitiveness of the country as an investment location, as mentioned by Julia Klöckner from the European Union's economic policy.
In light of the budget deficits and climate fund shortages, the Green party advocates for the released subsidy funding for Intel's chip factory to be allocated to the Climate and Transformation Fund, a decision that could potentially impact the European Union's funding and climate protection strategies.
