Associations from the construction and housing sectors fear a significant setback for residential construction. In an open letter to Chancellor Friedrich Merz (CDU) and other government members, they call for the announced savings in the federal budget to be reconsidered.
The signatories of the letter, including the IG BAU and the German Association of Housing and Real Estate Companies (GdW), warn that the cuts could not only lead to stagnation but would further exacerbate the already tense situation in residential construction. They emphasize that the savings would particularly affect new construction, where 1.4 billion euros less will likely be available in 2027 than this year.
The associations argue that the construction industry reacts differently to financial cuts than other sectors. A reduction in funds could significantly slow investments and thus have both short-term and long-term negative effects on building, renovating, and living in Germany.
Source: www.welt.de
