Today, the Federal Cabinet will approve the draft federal budget for 2023 and the financial plan up to 2026. Federal Finance Minister Christian Lindner is planning a return to the “debt brake”. The German Broadband Association (BREKO) has issued the following statement:

“In light of the current dramatic developments in the wake of the war in Ukraine and the ongoing effects of the coronavirus pandemic, Germany cannot afford to distribute public funds without prioritizing them according to urgency. We therefore expressly support Finance Minister Christian Lindner’s plan to review and prioritize investment spending and measures.

We appeal to the German government to limit the planned expenditure for the promotion of fiber optic expansion to a level that does not slow down the existing expansion momentum. We are one of the few industries not calling for greater government support. Telecommunications companies want to invest EUR 50 billion in the expansion of fiber optic networks over the next few years. However, these investments can only be made if they are not crowded out by an excessive subsidy policy. Funding for fiber optic expansion should therefore be limited to a maximum of EUR 1 billion for 2023.

Calls for prioritization in favour of state funding for the expansion of digital infrastructures while at the same time reducing social spending, on the other hand, are at the expense of many citizens who are particularly hard hit by the increased cost of living, and thus ignore reality.”