Despite the budget crisis: Habeck and state ministers want to stick to (climate) projects - even if that means new debt

The economics and energy ministers of the states and Federal Minister Robert Habeck (Greens) want to stick to the projects to be financed from it despite the Federal Constitutional Court's ruling on the Climate and Transformation Fund (KTF).

Despite the budget crisis: Habeck and state ministers want to stick to (climate) projects - even if that means new debt

The economics and energy ministers of the states and Federal Minister Robert Habeck (Greens) want to stick to the projects to be financed from it despite the Federal Constitutional Court's ruling on the Climate and Transformation Fund (KTF). “All the projects that we have designed must be made possible,” said Habeck on Monday after a meeting with colleagues from the federal states in Berlin.

Bavaria's Economics Minister Hubert Aiwanger (Free Voters) spoke of "indispensable" and "existentially important" projects so that "Germany as a business location can move into a competitive future." Armin Willingmann (SPD), Energy Minister of Saxony-Anhalt, emphasized that compromises could not be made in individual projects: "Making a ranking is simply impossible."

The Federal Constitutional Court has decided that 60 billion euros in unused credit authorizations for the fight against the corona pandemic could not be moved to the KTF. The financing of numerous climate and industrial policy projects - from the development of a hydrogen network to subsidies for the establishment of chip manufacturers - is now in jeopardy.

The three ministers emphasized that at the meeting of economics and energy ministers there was cross-party and cross-regional agreement that these funds must be found elsewhere. They called on the federal government and the Bundestag to find a solution together.

They did not provide any further details about what such a solution might look like. Habeck and Willingmann openly spoke out in favor of declaring an economic emergency for the current and next year in order to suspend the debt brake. At this point there are different opinions among the parties, said Willingmann.

Aiwanger also did not rule out financing through new debt. “We will then discuss whether we should touch the debt brake, whether we should cut corners on other projects, whether we should come up with new financing options. Whatever,” said the Bavarian. “But in any case, our economic policy projects must be achieved.”

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