Traffic light: shock waves after Habeck's funding stop when building houses - tens of thousands affected

Created: 01/26/2022, 13:43

By: Bedrettin Bölükbasi

Robert Habeck (Bündnis 90/Die Grünen), Federal Minister for Economic Affairs and Climate Protection © Michael Kappeler/dpa

The traffic light coalition is currently arguing about subsidies for house renovations and new buildings.

Economics Minister Habeck suspended them.

The SPD and FDP are dissatisfied.

Munich – A now controversial step by the Federal Ministry of Economics caused a powerful shock to property owners and builders.

The department of Robert Habeck (Greens) suspended funding for efficient buildings from the state development bank KfW.

So-called efficiency houses and energy-efficient refurbishment should no longer be financially supported.

The Union reacted with outrage and complained directly.

CSU boss Markus Söder described the decision as a "setback in the fight against climate change".

But now there are also contradictions within the traffic light coalition itself. The SPD and FDP oppose the move by the Habeck Ministry.

Traffic light dispute: Habeck Ministry stops new building subsidies - around 50,000 houses and apartments affected

Due to an "enormous flood of applications in recent weeks", the funding had been discontinued, the ministry justified the decision.

The demand clearly exceeds the funds provided, it was also said.

For citizens, this means a huge additional burden when building houses or renovating them.

Specifically, it is the new building subsidy for the so-called Efficiency House 55 (EH55).

However, the EH55 is standard on the market anyway, was another reason given by the Habeck Ministry for the immediate suspension of funding.

According to one estimate, around 50,000 construction projects are directly affected by the loss of KfW Efficiency House funding. "Roughly estimated 50,000 houses and apartments" are affected, said Harald Simons, head of the Empirica Institute, the

. For the estimate, he analyzed the number of building applications for new construction projects. Simons assumes that almost half of the 100,000 planned construction projects in the relevant time frame from the end of November to around May would have benefited from the subsidy.

"These projects must now be re-planned and re-applied for, and many builders will also wait and see which follow-up measures may come," Simons told the newspaper.

He expected significant delays of up to a year.

This is "the logical consequence of the Habeck shock".

It is also “unbelievable that the new federal government simply cashes in on the commitments made about the duration of the funding programs”.

That shouldn't happen in an orderly state, said Simons.

Habeck Ministry suspends funding for new construction - Union sees a blow to climate protection

The Union protested violently against the funding stop.

“Today, the traffic light surprisingly stopped an important funding program for energy-efficient building refurbishment.

This is a setback in the fight against climate change," emphasized CSU leader Markus Söder, citing that uncertainty had been created instead of planning security.

The CSU General Secretary remarked that climate protection had "no chance".

The CDU politician Jan-Marco Luczak, construction and housing policy spokesman for the parliamentary group, saw the ministry's decision as a "fatal signal for climate protection and the planning security of construction projects".

Instead of "decisions made overnight that pull the rug out from under the feet of owners and builders", one must ensure reliable framework conditions.

Green Minister Habeck stops new building subsidies - SPD and FDP criticize, but his party covers him

Criticism is now also coming from within the traffic light coalition.

Federal Building Minister Clara Geywitz (SPD) promised a quick new regulation.

"Anyone who tackles such a large project as building a house needs secure framework conditions," said the SPD minister to the

.

The government is already working on a new funding concept, she announced: "There will be clarity about funding opportunities as soon as possible."

Coalition partner FDP warned to hurry.

Their construction and housing policy spokesman Daniel Föst said to the newspaper: "We must not leave the house builders out in the rain." Many people had planned their own home or the renovations "on edge".

"If the KfW funds are gone now, it will be tight for many," says Föst.

Ownership formation, affordable housing and climate protection should not be a contradiction in terms.

There must now be a new regulation “as soon as possible”.

However, the environmental policy spokesman for the Greens parliamentary group, Stefan Wenzel, defended the surprising stop and gave Habeck backing: "Every subsidy needs a budgetary basis." The previous Economics Minister Peter Altmaier (CDU) did not create it, Wenzel told the

.

Therefore, the funding programs would “now be brought up to date and designed in accordance with the law”.