Dhe surprising freeze on applications for the KfW programs for energy-efficient building refurbishment is making waves. Everywhere in Germany, private individuals and companies now have to see how they can finance their construction projects without government subsidies. The decision by Economics and Climate Protection Minister Robert Habeck (Greens) is also causing discussions in politics.
Criticism came mainly from the Union faction in the Bundestag. The construction and housing policy spokesman Jan-Marco Luczak (CDU) described the decision as a “fatal signal for climate protection and planning security”. The deputy chairman of the Union faction, Ulrich Lange, made a similar statement. Even within the traffic light coalition, the decision was not well received. Federal Building Minister Klara Geywitz (SPD) called them “regrettable” and promised that the funding programs would soon be relaunched. SPD General Secretary Kevin Kühnert blamed the previous government: “Bringer of the message: a department head at the BMWi. His minister: Peter Altmaier (CDU),” he wrote on the short message service Twitter.
The Ministry of Economics announced on Monday that the current funding from the state development bank KfW for energy-efficient buildings would be stopped with immediate effect. The reason is a veritable flood of applications. According to the Ministry of Economics, a total of around 270,000 applications were made in 2021. In the period from November to January alone, a volume of 20 billion euros was requested. This number includes both loans and grants. This far exceeded the funds planned in the budget.
Bad for Lindner’s argument
According to the ministry, 24,000 applications that have been submitted but not yet decided are now pending. This affects 20,200 new buildings according to the efficiency standard 55, 3000 new buildings according to the even more economical standard 40 and 700 renovations. In the last two groups, funding is to start again soon under changed conditions. For applicants for an efficiency house 55, on the other hand, there will only be loans instead of grants.
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The funding freeze also affects the Federal Ministry of Finance led by Christian Lindner (FDP). It is certainly in his interest that subsidies in the billions will not be drained off after all. However, his line of argument in defense of the subsequent supplementary budget for 2021 also took a hit. Parliamentary State Secretary Florian Toncar (FDP) explained last week in the FAZ podcast for Germany that this was the only way to ensure funding for building renovations and electromobility. Hurry is required because of the provisional budget management after the change of government.
“More than adventurous”
The CDU budget politician Christian Haase considers Toncar’s arguments to be “more than adventurous”. “Apparently he doesn’t know or understand the BMF’s own letter on the provisional budget management of the energy and climate fund,” said the deputy of the FAZ. This allows significantly greater management leeway. He would have thought it more serious to include the necessary programs in the budget for 2022. “This procedure, which is clean in terms of budgetary law, would definitely not have led to a climate-political meltdown, as the general public is being led to believe by the traffic light coalition,” emphasized the budgetary spokesman for the Union faction. The 2021 budget shows that more than 5 billion euros have not been spent on the fund programs.
The Federal Ministry of Finance, on the other hand, said when asked that at the beginning of January an additional 6.6 billion euros had been approved for the energy efficiency program. “These were spent.” Further funds from taxpayers could not have been promised due to the budgetary targets. Through his spokesman, Lindner said he supports “a targeted and effective follow-up program being launched”. The incentive effect and predictability would have to be agreed on the one hand with the fiscal limits of the state on the other.
With the supplementary budget, 60 billion euros are to be redirected retrospectively to the energy and climate fund after the end of 2021. The Bundestag is due to pass the law this Thursday. The traffic light coalition wants to use him to secure credit authorizations from the exceptional Corona situation that would otherwise have expired. The Union sees this as undermining the debt brake in the Basic Law.
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