State and municipalities split funds from the special fund

The Free State of Saxony and the local authorities have agreed on the distribution of money from the federal government's "Infrastructure and Climate Neutrality" special fund. The federal government is providing a good 4.8 billion euros for this over a period of twelve years. The partners have agreed that at least 60 percent of the funds will be available for investments in municipal infrastructure and projects in the municipal interest, the Ministry of Finance announced.

Municipalities receive around 2.8 billion euros

10 percent of the sum - 483.8 million euros - is earmarked for upgrading the Nardt State Fire Brigade and Disaster Control School, the Southwest Saxony Master Plan, digitization projects and measures to support Saxony's bid to host the Olympics. Local authorities will receive around 2.8 billion euros to strengthen their investment opportunities. With around 1.5 billion euros, the state will use 31.5 percent of the funds for its own investments.

Municipalities to have the greatest possible autonomy

Of the 2.8 billion euros for the municipalities, 1.7 billion euros will be allocated in the form of investment budgets, the ministry announced. The municipalities should be able to decide on these budgets locally with the greatest possible autonomy. A further 1.1 billion euros are to flow into the municipal investment areas of road and bridge construction (45 percent), school building construction (45 percent) and municipal hospital construction (ten percent) via state funding programs.

Kretschmer sees evidence of Saxon community spirit

"With the agreement, we have succeeded in achieving a fair and appropriate distribution of the additional federal funds between the Free State and the municipal family. For me, the special Saxon community spirit and cohesion is demonstrated by the fact that we have agreed in solidarity on four special investment areas to be realized in the long term," explained Minister President Michael Kretschmer (CDU).

"We are united by the goal of using the funds from the special fund to make tangible improvements on the ground for people and to strengthen the future viability of the Free State," emphasized Kretschmer's deputy, Social Affairs Minister Petra Köpping (SPD).

Investments should generate economic momentum

"We should all be aware that these are first and foremost special debts. Whether this actually results in special assets is our responsibility. This will only succeed if the investments generate new economic momentum," clarified Bert Wendsche, President of the Saxon Association of Towns and Municipalities.

According to District Administrator Henry Graichen, President of the Saxon Association of Districts, the investment funds from the special fund are essential for the municipal level. "This is because many districts and municipalities are under so much financial pressure that it is almost impossible to make urgently needed investments on their own." They are determined to "get the money onto the roads quickly".

The passenger association Pro Bahn Mitteldeutschland misses investments in rail transport when it comes to distributing the money. "If millions of euros from an infrastructure fund are to flow into prestige projects such as the Olympics, while the railroad lines in Saxony are in need of renovation and expansion in many places or are without passenger transport, then something is fundamentally wrong," criticized Chairman Markus Haubold.