The construction sector is struggling with a decline in housing construction. Moreover, the renovations did not go as hoped. They remain stagnant at a low level. One solution could be even better fiscal stimulus.
Despite the funding, the wave of building renovations has not yet occurred. “The bonus initiated by the government is simply not being taken up enough,” says Roland Hebbel, spokesperson for the insulation and window industry. A 25 percent decrease in the volume of insulation materials is expected by 2023. The year before did not go well with a loss of 6 percent.
Although this can largely be explained by the weak new construction, renovations cannot compensate for this. According to the Ministry of Climate, 313 million euros in financing is so far available for the 2023/2024 offensive (also: “Get out of oil and gas”) and 616 million euros are still available.
A maximum of 14,000 euros is available per project. In addition, there are subsidies from the federal states – but these have decreased in the longer term: where they paid out 800 million euros in 2010, they recently paid out only 500 million euros per year.
The renovation percentage must increase to more than three percent
In any case, the goal is a renovation rate of more than three percent, says Hebbel; currently it is less than two percent. “We now need speed in implementation to achieve the climate goals.”
In Italy, for example, the government has had success with tax incentives: citizens can deduct 110 percent of expenditure on energy-related improvements to the building envelope; in Austria this is 4,000 euros over five years.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
