Germany’s main sawmilling body has criticised the German federal government’s “misplaced priorities” after the latter cut key building sector programmes in the country’s 2026 draft budget.
The German Sawmill and Timber Industry Association (DeSH) says the Government’s draft budget for 2026 will reduce investment for the Federal Funding for Efficient Buildings (BEG) – decreasing by €3.3bn compared to the previous year, to a total of €12bn in all. Furthermore, DeSH said a large portion of the budget is already tied up in ongoing commitments.
“The 2026 draft budget is a step backwards for the transformation of the building sector,” explained DeSH managing director Julia Möbus.
“Especially in times of construction crisis and consumer uncertainty, reliable framework conditions are essential. Instead of setting a clear course and accelerating the pace of the building transition, the federal government is sending the wrong signal. Funding for central funding programmes is being eliminated or reduced – this undermines the confidence of the industry and jeopardizes the urgently needed renovation of the building stock.”
DeSH says the budget cut makes it almost impossible to provide new impetus for energy-efficient renovations.
“Furthermore, the funding for serial renovations has been completely eliminated,” warned Ms Möbus.
“The instrument was intended to accelerate modernization of existing buildings and make it affordable. Serial construction and renovation offers great potential for the future. Its cancellation without replacement sends a fatal signal – not only for climate protection, but also for developers, real estate companies, and the crisis-ridden construction industry.”
DesH says anyone who wants to combine affordable and climate-friendly housing and heating must lead building subsidies into the future in a long-term and reliable manner.
