Sat. Jun 25th, 2022

Federal cabinet adopts 2022 supplementary budget – an additional €5.2 billion earmarked for Economic Affairs Ministry to master crisis in Ukraine

The federal cabinet adopted the supplementary budget to the 2022 federal budget today. In the context of the cabinet decision on the 2022 supplementary budget, the federal government has agreed to provide an additional €26.3 billion in order to master the repercussions of Russia’s illegal war of aggression against Ukraine. The Federal Ministry for Economic Affairs and Climate Action will receive €5.2 billion thereof to strengthen the domestic economy and secure jobs.

In the second government draft of the 2022 federal budget, the federal cabinet had already decided on 16 March 2022 that the federal government will submit a supplementary budget in order to mitigate the impact of Russia’s illegal war of aggression against Ukraine on Germany.

€5 billion of the additional €5.2 billion which has now been earmarked for the Federal Ministry for Economic Affairs and Climate Action in the supplementary budget will be made available to finance the grant programme for particularly affected energy-intensive companies in order to retain the respective industries in Germany and secure jobs. The remaining €200 million will be used in the course of the year where they are most urgently needed. The funds of the supplementary budget complement the regular budgetary funds of the departmental budget 09 for the Economic Affairs Ministry totalling around €10.96 billion, which were already adopted by the federal cabinet on 16 March 2022, and the €27.8 billion for the Energy and Climate Fund, which has been renamed Climate and Transformation Fund.

The current measures to ensure Germany’s energy supply, including purchasing gas reserves, chartering floating LNG terminals with regasification units and building an LNG terminal in Brunsbüttel, do not need to be funded by the Economic Affairs Ministry’s €5.2 billion share of the supplementary budget. These measures are financed with additional funds.

The parliamentary procedure will now follow. The 2022 supplementary budget is expected to be adopted by the German Bundestag together with the regular 2022 federal budget in June 2022 and will enter into force retroactively with effect from 1 January 2022.