Germany will cut over €30 bln from its Climate and Transformation Fund by 2030
and shift part of the money into the federal budget, the cabinet approved. The
plan reduces fund spending by €19.7 bln over the next four years and transfers a
further €13.2 bln to the federal budget. The coalition led by Chancellor Merz
and Finance Minister Klingbeil had previously allocated €10 bln to the fund;
some projects backed by the fund will face funding cuts as part of public
spending consolidation. The government said the reductions are partly justified
by a separate multibillion-euro subsidy scheme to lower electricity costs for
energy‑intensive firms, which requires participating companies to invest in
reducing production-related emissions.
