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Construction site in Berlin: "But the chance of a revival is getting smaller and smaller"
Photo: Carsten Koall / dpa
The situation in the construction industry is bleak and was even before the Federal Constitutional Court's ruling on the Federal Climate and Transformation Fund. The building ministers of the federal states are currently meeting in Baden-Baden and discussing ways out. "It's doubly bitter: since the housing market is already down, there is no longer any impact. However, the chance of a revival is getting smaller and smaller," said Tim Oliver Müller, Managing Director of the German Construction Industry Association. The federal government has done too little to respond to the crisis.
In its ruling, the court had declared unconstitutional a reallocation of credit authorizations amounting to 60 billion euros to the Climate and Transformation Fund (KTF). Federal Finance Minister Christian Lindner (FDP) had then called for a stronger focus on effective spending. However, it is not yet clear which of these could affect residential construction.
Regardless of the Karlsruhe decision and the consequences of the earthquake emanating from it, the situation is difficult, according to the industry association. Building permits are falling, new orders are falling, and the number of cancellations of orders already placed is increasing. The German government's goal of building 400,000 new apartments a year has long been considered an illusion, and it could even fall below the 2025,100 mark in 000.
The chairwoman of the Conference of Building Ministers, Baden-Württemberg's head of department Nicole Razavi (CDU), assumes devastating consequences should further cuts be necessary. She and Müller fear that the few planned measures, such as the subsidized purchase and renovation of old houses by young families, will now be put up for discussion.
The Federal Ministry of Construction has not yet been able to quantify the consequences in detail, but sees the financing of home ownership for families (WEF) and climate-friendly new construction (KFN) secured at least this year, for which almost two billion euros have been earmarked for the current year. According to a spokeswoman, social housing is also generally excluded, as it is financed through the normal budget. In addition, it said: "Commitments that have already been made will be kept."
A sword of Damocles hangs over the remaining expenditures: 1.1 billion euros are estimated for WEF and KFN next year. The renovation of sports facilities, the adaptation of urban areas to climate change and financial aid for municipal heat planning could also be affected.
The Federal Chamber of Architects appeals to politicians to maintain at least the "most important and effective measures in terms of climate policy". These include, among other things, the renovation of inefficient buildings, where more CO₂ can be saved than by promoting new construction. Climate adaptation in the municipalities and the heat transition in the boiler rooms must also not be neglected.
mik/dpa-AFX