Kickstarting Progress: Construction Industry Pins Hope on Federal Government's Billion-Euro Package
Federal construction sector bracing for potential expansion courtesy of government initiatives - Government Funding Set to Bolster Construction Sector's Growth
Buckle up and get to it: The Rhineland-Palatinate construction industry is pinning high hopes on the new federal government and its billion-euro package, anticipating a much-needed push. Beyond the money, states and municipalities need the power to make the necessary arrangements for infrastructure projects, according to Klaus Rohletter, president of the Association of the Construction Industry Rhineland-Palatinate, during Construction Industry Day in Mainz.
Making sure the funds are invested wisely requires capable planners. Rohletter is confident that infrastructure renewal won't miss the mark due to lack of capacity. "The construction industry prepared to execute the plans is certainly on standby. We've kept our resources intact during the crisis phase."
"Stimulating demand from the state"
Renewing infrastructure is economically crucial, regardless of political beliefs, Rohletter underscored. "The state needs to spark demand through the special fund," he insisted, aiming to trigger additional investments from other parties as well.
The housing sector is also in dire need of attention, Rohletter pointed out. "At present, private investments in housing are abysmally low, leading to a stagnant housing supply," he said. A collective effort is needed to get private investors back on board. "This can be achieved by rethinking manufacturing costs and planning requirements for apartments," though interest rate trends also play a role.
Rohletter urges for reduced bureaucracy in the future. The previous government unleashed a regulatory tide, shoving numerous things into administrative regulations and altering them frequently. "This has generated uncertainty and slowed both progress and decision-making." The new federal government should prioritize trust in the market and businesses, Rohletter advises.
The long delays in project approvals worry Rohletter. "Some projects take five years, others take half a century to get the green light," he lamented. "Such delays are, in my opinion, no longer acceptable in today's society." When society craves change, it must weigh the pros and cons. "And the common good must always outweigh the personal interests of a hundred individuals."
Overall, Rohletter believes a shift in mindset is necessary. For years, Germany has found itself caught up in complaining, rather than embracing action and a can-do attitude. "Everyone is called upon: every consumer, every client, every business, and of course the public sector at various levels."
Behind the Scene
While not a complete overhaul, this new government package aims to reshape Germany's infrastructure. The initiative encompasses €500 billion over several years and includes investments in grid and battery infrastructure, energy-efficient renovations, electric mobility, and the expansion of the hydrogen industry. The package seeks to streamline planning procedures and reduce regulatory burdens to facilitate investments.
- The construction industry in Rhineland-Palatinate is placing substantial faith in the new federal government, anticipating a stimulus from the billion-euro package aimed at the industry.
- Klaus Rohletter, president of the Association of the Construction Industry Rhineland-Palatinate, advocates for enabling states and municipalities to make necessary arrangements for infrastructure projects, with a focus on executing plans efficiently.
- Rohletter asserts the need for the state to stimulate demand through its special fund, in order to trigger additional investments from other sectors and bolster the housing sector that is currently experiencing low private investments.
- Reducing bureaucracy and streamlining project approvals is essential, according to Rohletter, as long delays hinder progress and create unnecessary uncertainty, particularly in contemporary society where change is in demand.
