Shortage of coal leads to halted investments in Leipzig
Leipzig, the largest city in Saxony, has announced a moratorium on new investment projects due to uncertainty about funding from state and federal governments. The moratorium, announced by Leipzig's finance mayor, Torsten Bonew (CDU), will last until June 30, 2026.
The moratorium applies to all new investment measures and projects in Leipzig. Examples of projects covered by the moratorium include construction measures, land acquisition, and loan disbursements. However, there are exemptions to the moratorium. These include new school places as needed, energy-efficient renovation of schools (if economically sensible and within a comprehensive renovation), traffic safety of engineering structures such as bridges (in case of urgency), disaster protection, the district heating expansion pilot project in the South West (if the necessary own contribution is financed), economic promotion that significantly improves the city's revenue situation, and the preparation of the Olympic bid.
The uncertainty is due to the debate over the rules for the use of funds from the federal and state governments. This debate involves the debt-financed infrastructure package of the federal government and the Saxon Funds Act. The search results do not contain specific information about the exact conditions that must be met for the federal and state governments to financially support Leipzig and lift the investment ban.
Certain areas may be excluded from the investment stop, but the details are not provided in this paragraph. The rules for the use of funds are currently being discussed to increase investment. Leipzig has a population of approximately 632,000.
It is worth noting that the moratorium applies to new investment projects planned from 2025 that lack financial guarantees. This move is aimed at ensuring the city's financial stability while the funding situation is clarified. The city urges investors to plan their projects accordingly and to seek financial guarantees to avoid delays in the implementation of their projects.
The moratorium is a significant development for Leipzig and its investors. The city is hopeful that the ongoing discussions will lead to a clearer picture of the funding situation and allow for the resumption of investment projects in the future.
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