Federal Economics Minister Robert Habeck (Greens) has announced more flexible funding for structural change in the coal regions in East and West Germany. “We will also open up funds to promote business settlements,” said Habeck at the East German Economic Forum in Bad Saarow, which this year is dealing with the transformation of the business location under the conference motto “Fast forward”. Specifically, it is about 2.8 billion euros from the federal STARK program to strengthen the transformation dynamic and to get things moving in the areas and at the coal-fired power plant sites. The funding focus of the program has so far been on non-investment measures. In the future, the funds should also be available for business support within the limits of EU state aid law. “What this means is that these funds are available for the establishment of solar companies, for example,” said Habeck at the top meeting of the East German economy at the gates of Berlin. The funding periods will also be made more flexible, as stated in a paper by the Federal Ministry of Economics. Any funds from a project that have not been disbursed should now be spent up to three years after the end of the funding period. “The money can be spent on active SME policy, make something good out of it,” Habeck urged the around 400 participants in the event from politics, business and science. The package was launched by the Federal Ministry of Economics together with the Federal Ministry of Finance, as stated in the paper from the Ministry of Economic Affairs is called. It does not provide for additional funds. In total, the federal government is making more than 40 billion euros available for transformation measures in the lignite regions and at the hard coal power plant sites as part of the Investment Act for Coal Regions passed in 2020. More on the topic With a view to the East German coalfields, the Ministry of Economic Affairs confirmed the legally agreed phase-out of coal-fired power generation by 2038. ” The federal government will not make any political efforts to change this legal deadline,” the paper says. A possible market-driven exit before 2038 would remain unaffected. Habeck expressed confidence in the economic situation despite the poor mood, particularly in the East German economy. “Many indicators are pointing upwards now,” he said. As an example, he cited domestic tourism, which is facing a golden year due to the European Football Championship starting in a few days. Habeck is also hoping for tailwind from the European Central Bank shortly before the next meeting of the ECB Governing Council. Because inflation has approached the target of two percent, the central bank could lower the key interest rate. “And hopefully further interest rate steps will follow.”
Go to Source