Warning of insolvencies and job cuts
The construction industry and the IG BAU trade union have once again called on politicians to take countermeasures in view of the crisis in residential construction. The President of the Central Association of the German Construction Industry, Wolfgang Schubert-Raab, told the newspaper "Augsburger Allgemeine" (Wednesday): "If the slump in residential construction continues like this, we are not only facing a wave of insolvencies next year, but also the loss of around 100,000 jobs."
By September, around 77,000 fewer apartments had been approved than in the same period last year. There will also be a wave of cancellations. In view of the billion-euro shortfall in the federal budget, investors must now quickly obtain clarity on the framework conditions for the coming years, demanded the head of the association. If subsidies are cut and conditions become even worse, residential construction will collapse for years to come.
The chairman of IG Bau, Robert Feiger, told the newspaper: "There are still orders on the books, but the stock will also run empty at some point." The union is calling for a "special fund" of 50 billion euros for the construction of social housing. A further 22 billion euros would be required to build affordable housing for those on average incomes, said Feiger.
Bavarian Construction Minister Christian Bernreiter (CSU) said with regard to the Construction Ministers' Conference: "Our goal must be to prevent the construction and housing industry from crashing completely."
The construction industry and the IG BAU union urge politicians to reconsider housing policy, as the continued slump in residential construction threatens mass insolvencies and job losses. To mitigate this, IG Bau proposes a special fund of 50 billion euros for social housing construction and an additional 22 billion euros for affordable housing for average income earners.
Source: www.dpa.com
