A ruling by the Federal Constitutional Court could lead to uncertainty with regard to home ownership subsidies. It has declared the Second Supplementary Budget Act 2021 null and void (2 BvF 1/22). The aim of the law was to make a credit authorization of 60 billion euros for the "Energy and Climate Fund" [later renamed the "Climate and Transformation Fund" (KTF)] available for future financial years, which was planned for 2021 but not used.
According to Wirtschaftswoche, the ruling also affects new construction funding programs that the Federal Ministry had only launched this year. Specifically, it concerns the funding freeze for KfW's low-interest loans for the four programs "Promotion of cooperative housing" (134), "Age-appropriate conversion" (455-B), "Energy-efficient urban refurbishment - neighbourhood supply" (202) and the "BMWSB hardship program for housing companies 2023" (805). KfW would like to point out that promotional loans that have already been approved are not affected by the budget freeze.
The Federal Constitutional Court found that the law did not meet the constitutional requirements for borrowing due to emergencies. The nullity of the law means that the size of the Climate and Transformation Fund will be reduced by 60 billion euros. The budget legislator will have to find other compensation for obligations already entered into that can no longer be serviced as a result.
Sources: bundesverfassunggericht.de/(2 BvF 1/22)/wiwo.de/rtl.de/kfw.de
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