MUNICH/BERLIN (dpa-AFX) - The federal government is cutting this year's subsidies for fiber optic expansion in the federal states by one billion euros. Instead of the planned three billion euros, only two billion euros will be available in 2024. This is according to a letter from the Federal Ministry of Transport to the federal states, which has been made available to the Deutsche Presse-Agentur.

Bavaria's Finance Minister Albert Füracker (CSU) protested: "The federal government is cutting a billion euros for Germany's digital future this year. That is absolutely irresponsible." The Federal Ministry fears no impact on the pace of gigabit expansion. The German Broadband Association - the lobby group for telephone and data network operators - believes that cutting the government's gigabit requirement makes sense.

Gigabit program in high demand

The fiber optic subsidies are intended for the particularly expensive network expansion in rural regions, where telecom providers have to lay many kilometers of cable to connect comparatively few households. Since the start of the program, the demand from rural communities has been high and almost chronically oversubscribed. However, the telecoms providers have repeatedly criticized via their industry association that the subsidies are too high.

Budget score at the federal level

The reason for the cut is the current federal budget score. The Federal Ministry justifies the short-term cancellation this year with the preservation of the gigabit requirement next year: "It is good news that, despite the tight budget situation, we will continue to provide strong support for fiber optic expansion in 2025," the Berlin letter states. "To achieve this, it was necessary to adjust the funds available for 2024 to around two billion euros."

It is not entirely clear in the letter how much gigabit money is planned for 2025: "In addition to around 900 million euros in amendment approvals and the KfW program, the federal government is including one billion euros in the budget for new approvals for broadband expansion projects as part of Gigabit Demand 2.0," it says. Bavaria's Finance Minister Füracker fears a drastic cut next year as well.

Füracker: "Unable to plan for municipalities"

According to the Minister, this year the Free State will have €295 million left over instead of the €460 million that the state government had expected. For North Rhine-Westphalia, 230 million euros are still planned, for Baden-Württemberg 215 million euros. "The behaviour of the federal government leaves you speechless," criticized the CSU politician. "Such a cut, virtually retroactively, makes it impossible for our municipalities to plan."

The Federal Ministry of Transport contradicts the fears: "Gigabit expansion is progressing faster than ever before," emphasized a spokesperson. "We are seeing a high level of dynamism in the market. 90 percent of the expansion is now being carried out commercially." The funds could therefore be used in an even more targeted manner and adjustments could be made. "The federal government will continue to invest billions in broadband expansion in the future. "We are on track to achieve all expansion targets by 2030." The goal for 2030 is nationwide coverage of all households and companies.

The Federal Association for Broadband Communication (Breko) argues that the gigabit requirement procedures are taking too long and that too much state money is being spent. "Reducing the funds for the gigabit requirement is absolutely understandable against the backdrop of the tight budget situation," explained Head of the Capital Office Sven Knapp. "We are even assuming a faster expansion of fibre optics, as there could be fewer requests from areas in which a significantly faster, self-sufficient expansion would be possible."/cho/DP/ngu