In view of the sluggish construction activity in Germany, Federal Building Minister Klara Geywitz (SPD) is opposed to the planned increase in energy standards for new buildings. “We also have to have a debate as to whether we should really tighten standards further,” said Geywitz on Monday in RTL / ntv “early start”. According to a new survey by the Ifo Institute, residential construction in Germany continues unabated. In July, a good 40 percent of the companies surveyed by the Ifo complained about a lack of orders, after 34.5 percent in June. “A storm is brewing. After a long boom, the higher interest rates and the drastically increased construction costs are literally choking off new business,” said Klaus Wohlrabe, head of the Ifo surveys, in Munich. At the same time, projects are constantly being cancelled. Because of the enormous demand, especially in the cities, the traffic light coalition had targeted the construction of 400,000 new apartments per year in the coalition agreement – 100,000 of them social housing. Geywitz said: “I think it’s not the time (…) to tighten the standards here again.” Geywitz was referring to an agreement in the coalition agreement between the SPD, the Greens and the FDP, according to which the EH-40 energy efficiency standard is to be prescribed for new buildings from the beginning of 2025. This would tighten the specifications for the thickness of the insulation. Stricter insulation requirements would increase construction costs, a ministry spokeswoman said. Geywitz therefore asks whether insulation is a panacea or whether the life cycle costs of a building should be considered. The draft for a building energy law on these questions is now being worked out with the economics department, about which the houses started talking “promptly”. A package of measures to boost construction activity is also planned for the end of September, the ministry spokeswoman confirmed. According to the Ifo Institute, every tenth housing construction company has now reported financing difficulties. “Under the new conditions, many projects are no longer profitable for investors, and private builders are also having increasing problems getting financing,” said Wohlrabe. A majority of companies are anticipating a further slowdown in the coming months. “On the one hand, existing orders are continuously being cancelled, on the other hand fewer and fewer new orders are coming in,” said Wohlrabe. Geywitz rejected the proposal by Green party leader Ricarda Lang to promote social housing through public investment companies. “What you shouldn’t do if the constitution provides for a debt brake is to find a shortcut now,” said the SPD politician. In an interview with the German Press Agency, the Greens leader had pleaded for bypassing the debt brake. “Without any impact on the debt brake, we can easily equip the railways or the Federal Agency for Real Estate Tasks in such a way that they meet the challenges of our time,” explained Lang. The Federal Agency for Real Estate (Bima) could then invest in social housing.
Minister of Construction Geywitz against higher insulation standards – economy
