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Comments on the Implementation of Support to Accompany the Coal Phase-out in the Eastern German States

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  • Joachim Ragnitz

Abstract

To support structural change in the remaining three coal mining areas affected by the closure of lignite mining due to forced climate protection policies in Germany, the Federal government has pledged up to 40 billion euros for the period 2020-2038. 14 billion euros alone are bookmarked to financial assistance for significant investments by the states or their municipalities. An evaluation of actual projects in the two coalfields in Eastern Germany shows that a considerable proportion of these funds will be used to finance measures that may improve local living conditions, but have only a minor effect for successful structural development. The article argues that the selection of projects should be more strongly oriented toward the goals of the Structural Strengthening Act, since otherwise a failure of the transformation process in these regions cannot be ruled out.

Suggested Citation

  • Joachim Ragnitz, 2021. "Comments on the Implementation of Support to Accompany the Coal Phase-out in the Eastern German States," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(06), pages 03-06, December.
    • Handle: RePEc:ces:ifodre:v:28:y:2021:i:06:p:03-06
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    File URL: https://www.ifo.de/DocDL/ifoDD_21-06_03-06_Ragnitz.pdf
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    Cited by:

    1. Michael Broer, 2022. "Effekte einer Tilgungsstreckung für coronabedingte Staatsschulden [Repayment of the Public Debt — Financial Leeway by Changing the Repayment Plan at the Expense of Future Generations]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(3), pages 210-216, March.

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