climate government: aid for private house builders after kfw funding freeze
Berlin – private house builders can hope for support after the controversial kfw funding freeze. There are to be hardship provisions for families in particular.
This was signaled by both finance minister christian lindner (FDP) and economics and climate protection minister robert habeck (greens) on sunday. An agreement within the federal government did not give it however yet.
On Monday, a surprise announcement was made that, with immediate effect, no new applications for subsidies for efficient buildings could be submitted to the state development bank kfw. The move had triggered large protests. 24.000 applications still open, 4,000 of them from private builders.
Habeck for quick solution
Habeck urges rapid connection solution. the green politician told the german press agency: "it’s about cushioning social hardship and making sure that families in particular who want to build their one- and two-family homes are not left out in the cold. Appropriate construction projects that cannot be financed in any other way and would otherwise be on the brink of failure are to be made possible."
Lindner told the "spiegel, with a view to the 4,000 open applications from families and private individuals: "we won’t leave them in the lurch. On the contrary, my goal is to make the dream of owning their own home a reality for more people. If the coalition agrees to this, then I will make it possible for there to still be a subsidy here."
From the ministry of economics it, proposals are on the table. The coalition partners are working intensively to find a viable solution. At the same time, there is a need for a rapid reorganization of building subsidies with clear efficiency criteria so that construction projects are not put on hold would be put.
Hardship rules and loans
Hardship rules and loan offers via the kfw are reportedly under discussion. the german student union warned of the loss of new dormitory places. "Around 2700 new, affordable dormitory places at the student union are "over night on the brink", the secretary general of the student union, matthias anbuhl, told the editorial network deutschland (sunday). The federal government must help in the short term.
Lindner defended the funding freeze. "There were some "windfall profits", he told the "spiegel. it is not possible or reasonable in the market economy to pay billions of euro in subsidies to companies in the long run. "in january, i had approved five billion euros in provisional budgetary management. These means are exhausted." he pays attention to careful handling of taxpayers’ money.
Also habeck had on "uncovered budget promises referenced in billions. Above all, the previous government’s announcement that it would discontinue the Efficiency House (EH) 55 program for new buildings at the end of January led to a boom in applications at the KfW. The classification means that the building consumes 55 percent of the energy that a standard house requires.
Rapid decision planned
ÜOn the future of new construction subsidies for EH40 new buildings, the government wants to decide quickly, according to earlier statements by the ministry of economics. Funding for renovations is to be resumed as soon as budget funds are made available.
Lindner told the "spiegel" newspaper, he believes it is right that the energy-efficient refurbishment of buildings should continue to be promoted. "Here is the effect per euro for the climate efficiently. New programs will be introduced. However, it is not possible for politicians to continue to drive up the standards for new buildings in order to subsidize the rising costs from the state coffers." For families a separate house must remain accessible. "Therefore, a kind of construction cost MOT is advisable."
julia klockner, economic policy spokeswoman of the union parliamentary group, told dpa that kfw applications that have already been submitted must be processed quickly and approved if the prerequisites are met. "In the second step, a viable and sustainable follow-up solution for the promotion of energy-efficient buildings is needed quickly. Otherwise, there will be a thread breakage during the energetic refurbishment."