KfW funding freeze: countries call for special construction ministers’ conference

Berlin The Baden-Württemberg housing minister Nicole Razavi (CDU) wants to convene a special meeting of the building ministers’ conference “soon”. “I am also concerned with the topic of the federal government’s unexpected and early stop in funding for energy-efficient buildings as chairwoman of the conference of building ministers,” she said when asked by the Handelsblatt.

“We need clarification: The federal government must now say as soon as possible how the KfW funding will continue in order to end the uncertainty and to keep the damage to housing construction in Germany as low as possible,” she continued.

She had planned a special conference of construction ministers anyway, “in order to enter into a good exchange with Federal Minister Klara Geywitz,” said the CDU politician. She sees herself confirmed by the initiative of the federal states to invite to a special meeting.

After the controversial KfW funding freeze for energy-efficient buildings, NRW, Bavaria and Brandenburg wrote to Razavi on Thursday morning, demanding a special building ministers’ conference between the states and the federal government: “The current decision by the federal government torpedoes the affordability of housing, the measures in public housing and the privately financed living space throughout the Federal Republic of Germany,” says the letter, which is available to the Handelsblatt. Important construction projects are on the verge of collapse.

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NRW Building Minister Ina Scharrenbach (CDU) demanded that the “hiccup” must be ended immediately. “The funding freeze threatens construction projects across the country, unsettles owners and ultimately causes rent increases.” The freeze must be withdrawn, or there must be a quick alternative that is equivalent to the previous KfW funding, demanded the CDU politician.

NRW Minister of Construction

Ina Scharrenbach calls for a special conference to be called “at very short notice”.

(Photo: imago images/Political Moments)

The Federal Ministry of Economics surprisingly announced on Monday that from now on no new applications can be submitted to the state-owned KfW bank for federal funding for efficient buildings. This applies to the so-called efficiency house (EH) 55 in the new building, the EH 40 in the new building and the energetic renovation. The Ministry wants to decide quickly on the future of new construction funding for EH40 new buildings.

Federal Minister of Economics Robert Habeck defended the stop on Wednesday. The Green politician spoke of “uncovered budget promises” and announced that he would quickly ensure planning security. Some of the applications that have not yet been approved can be funded.

Union Group motion for a resolution

The CDU/CSU parliamentary group announced that it intends to submit a motion for a resolution to the Bundestag on Friday. It reiterates the demand to reverse the freeze on subsidies for energy-efficient buildings and existing building renovations imposed on January 24 with immediate effect. Funding applications that have already been submitted are to be processed quickly and approved quickly if the requirements are met.

“The funding stop without warning leaves tens of thousands of young families out in the rain, and their dream of owning their own home is now threatening to burst,” said Jan-Marco Luczak, spokesman for construction and housing policy for the Union parliamentary group. “The Federal Minister of Economics has massively destroyed trust.” This is not only a blow to the formation of property, but also thwarts the goals for climate protection and new construction.

Experts report that steadily rising construction prices and rising interest rates have made construction significantly more expensive in recent months. If the planned KfW funding were to be lost, many construction projects were in danger of failing.

“We now need planning security as soon as possible, what will be funded under what conditions and to what extent in the future,” Luczak demanded. “Otherwise the real estate industry cannot and will not build up the necessary capacities to achieve the ambitious new construction targets.”

More: Comment: The halt to KfW construction subsidies sends the wrong signals

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