<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The transition to climate neutrality within the framework of the Paris Agreement and the EU Green Deal means a challenge in terms of technical and financial efforts. The small, structurally and financially disadvantaged German states of Bremen and Saarland are particularly struggling due to their CO<sub>2</sub>-intensive industries and limited public budgets. Therefore, both governments have decided to finance the enormous public investment costs with a three billion euro debt package each. With this public funding, both states are trying to reverse the negative economic development in their regions. At the same time, this step opens up a discussion on the existing rules of the German debt brake for other federal states.</p>
</abstract>

The transition to climate neutrality within the framework of the Paris Agreement and the EU Green Deal means a challenge in terms of technical and financial efforts. The small, structurally and financially disadvantaged German states of Bremen and Saarland are particularly struggling due to their CO2-intensive industries and limited public budgets. Therefore, both governments have decided to finance the enormous public investment costs with a three billion euro debt package each. With this public funding, both states are trying to reverse the negative economic development in their regions. At the same time, this step opens up a discussion on the existing rules of the German debt brake for other federal states.

Investments in Climate Protection and Transformation Despite the Debt Brake

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Investitionen trotz Schuldenbremse: Bremen und das Saarland setzen Impulse

The transition to climate neutrality within the framework of the Paris Agreement and the EU Green Deal means a challenge in terms of technical and financial...

Investments in Climate Protection and Transformation Despite the Debt Brake

Published Online: Jun 14, 2023

Page range: 314 - 321

DOI: https://doi.org/10.2478/wd-2023-0097

© 2023 Patricia Bauer et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.