The federal budget freeze has had its first consequences for Saxony. Around a third of the funding planned for the commercial sector this year has been stopped by the federal government and cannot be used for the time being, the Ministry of Economic Affairs announced on Monday.
Including co-financing from the state of Saxony, there is a shortfall of 50 million euros. This was first reported by Sächsische.de. The ministry hopes that funding will be resumed in 2024 - when the federal budget comes into force.
According to the ministry, companies in the manufacturing sector as well as business-related service providers and tourism companies are affected. Specifically, it concerns the so-called GRW funds. GRW stands for "Joint Task for the Improvement of Regional Economic Structures". It is funded equally by the federal government and the state.
The total amount that has been blocked for Saxony in the federal budget is around 25 million euros, it was reported. However, projects that have already been approved are not affected.
