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09 Aug 2023, 13:56
Sören Amelang

German Greens propose to boost flagging economy with building investments

dpa

Germany's Green Party parliamentary group wants to support the country’s struggling economy with a 30 billion euro investment programme that focuses on energy-efficient building modernisations. An investment stimulus for the economy, jobs and the climate is needed, parliamentary group chair Katharina Dröge told newswire dpa, who has seen the proposal. “That's why we are proposing an investment programme to strengthen the construction sector and industry, in particular by significantly increasing state support for social housing and energy-efficient building renovations, and by driving forward social housing construction.” Last month, the International Monetary Fund (IMF) said that Germany’s economic output may shrink slightly this year, in contrast to other major economies. The Greens’ investment proposal would be fed from Germany’s “Economic Stabilisation Fund,” which originally was set up to support the economy during the COVID-19 pandemic. Additionally, the government plans to boost the shift to climate neutrality with almost 60 billion euros of investments from the Climate and Transformation Fund (KTF) next year.

Green politicians propose doubling subsidies for energy-efficient renovations to 30 percent, focusing in on the most inefficient buildings. The funding for renovations of apartment buildings should also be increased, and non-profit institutions such as day-care centres, hospitals, retirement homes, sports facilities or youth leisure facilities should also receive support for modernisations to make them more energy-efficient, according to the proposal, which also supports the Green-led economy ministry’s plan to lower industry electricity prices with subsidies. The Green Party's proposal is set to face resistance within the government, as the Free Democrat (FDP)-led finance ministry has already rejected the industry power price proposal, and a spokesperson told Rheinische Post the money in the Stabilisation Fund was already specifically earmarked, and that a reallocation was constitutionally limited.

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