Federal budget crisis jeopardizes planned projects in Dresden

In light of the federal budget crisis, Dresden fears the impact on planned projects in the city. The closure of the Climate and Transformation Fund (KTF) may also affect projects in the state capital, the city announced on Thursday. The fund was used to finance the adaptation of urban spaces to climate change and the renovation of municipal facilities in the areas of sport, youth and culture. Both programs will now be discontinued, it said. The city was planning to use the funds to renovate the Dölzschen air bath and the climate-friendly renovation of the Technical Collections, among other things.

Last week, the Federal Constitutional Court declared the reallocation of 60 billion euros in the 2021 federal budget null and void. The money had been approved as a coronavirus loan, but was subsequently to be used for climate protection and modernizing the economy. At the same time, the judges ruled that the state may not reserve emergency loans for later years. As a result, further billions of euros for future projects are at risk.

What the decision means for important semiconductor projects such as the establishment of the chip company TSMC in Dresden is still unclear. At least part of the billions in funding for TSMC comes from the Climate and Transformation Fund. Saxony and the industry association Silicon Saxony had called for the funding to be clarified quickly.