Medium-sized companies lack their most important support program.
(Photo: age fotostock/Getty Images)
Berlin The Central Innovation Program for SMEs (ZIM) hasn’t worked for half a year. In October, the old federal government imposed an application freeze for the important subsidy program despite loud protests from business. The funds were lacking, they said. Only special projects of a small scope were approved.
Now the traffic light coalition has raised more money for the ZIM. Finance Minister Christian Lindner (FDP) first promised an increase to 600 million euros. The budget committee decided on Wednesday evening to increase the funds to 620 million euros for 2022, the Handelsblatt learned from coalition circles.
It was initially not certain that the funding program would actually be credited with more money. The increase in the ZIM made it into the coalition agreement between the SPD, the Greens and the FDP. But Federal Finance Minister Lindner initially made no move to implement the project.
But are the additional funds that have now been decided sufficient? Due to the stop last year, 2300 applications could not be processed. A spokeswoman for the Federal Ministry of Economics made it clear on request that some of these open projects could be approved thanks to the increase decided on. “At the same time, however, the financial scope for new approvals remains limited.” A complete end to the application freeze at the ZIM therefore still seems questionable.
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In the past, the government had always granted the funding program around 550 million euros per year. In the corona crisis, however, demand for the program increased significantly, and the federal government increased the amount to 620 million euros in 2021. But even that wasn’t enough. There were so many applications that the money was used up in October and the then Economics Minister Peter Altmaier (CDU) had to stop applications.
Companies have to keep waiting
In the coalition talks, the figure of 700 million euros was circulated that would be needed in 2022 to open the ZIM to the general public again. However, due to the tense budget situation due to the Ukraine and energy crises, there was not enough money for the support program. However, the 620 million euros that have now been agreed are not quite final, and the funds could still be increased in the adjustment process and via residual expenditure.
According to Felix Banaszak (Greens), member of the budget committee of the Bundestag, the increase is still an important process. In a first step, the traffic light secures the funding program. “We are also sending a signal to the companies that further efforts to convert their production are worthwhile,” he said. Banaszak expects that, in addition to the projects that have already been submitted, the funding of new applications will also be made possible.
The opposition, on the other hand, doesn’t think that’s likely. Thomas Jarzombek, research policy spokesman for the CDU/CSU, was disappointed: “I find it bitter that the research of small and medium-sized companies is obviously the quarry for the budget of the coalition.” From his point of view, the 700 million euros for the program would have been needed, which the Union had unsuccessfully requested.
>> Read here: How the application stop in October came about
Achim Dercks, Vice-Chairman of the Association of German Chambers of Industry and Commerce (DIHK), demands: “It is important that the application freeze is now lifted quickly.” The decision as to whether and to what extent the ZIM can be reopened for new applications will only be made the spokeswoman for the Ministry of Economics explained.
What is clear, however, is that the funded projects can extend over several years and continue to receive support. The Ministry of Finance has already set so-called commitment authorizations for the ZIM, 150 million euros for 2023 and 50 million euros for 2024.
This emerges from a letter from Finance Secretary Florian Toncar, which is available to the Handelsblatt. In it, the FDP politician writes: “Another approval freeze would have a significant impact on the project and budget planning of the companies addressed by the funding program.”
More: “We are in the middle of a broad investment freeze” – Ukraine war blocks the German economy