Funding for proposed projects in Saxony-Anhalt is sluggish, despite abundant concepts being pitched
In the heart of Central Germany, Saxony-Anhalt is undergoing a significant transformation, with approximately 5.26 billion euros in funding allocated for structural change from various programs. The funds, divided into three main sources - the 1st pillar (1.68 billion euros), the 2nd pillar (3.12 billion euros), and the EU's Just Transition Fund (365 million euros) - are being used to drive economic growth and create jobs.
The regions themselves decide which projects they consider sensible for the distribution of state funds, with the Burgenlandkreis, Mansfeld-South Harz, Saalekreis, Anhalt-Bitterfeld, and Halle receiving the most funding from the 1st pillar. Some of the planned projects include the construction of a sports and cultural center in Köthen for research and development, the expansion of the Leuna chemical park, and an industrial area near Sangerhausen. Infrastructure for public services, such as the renovation of schools in Zeitz, is also receiving attention.
A new education campus is set to be built in Naumburg, Burgenland district, consisting of four schools, a large sports hall, a soccer field, and workshops. The groundbreaking ceremony for this project took place on Monday. Interestingly, the structural change task force has announced that it will focus more on the education sector and schools with the remaining funds.
However, Mirko Titze from the Institute for Economic Research in Halle (IWH) warns against investing too much of the coal funds solely in additional jobs without considering the necessary personnel. Vocational training and further education, as well as the recruitment of qualified workers - also from abroad - are particularly important, according to Titze.
The allocation of these funds is closely monitored to ensure they are used sensibly and effectively. Key elements of this monitoring process include project evaluation and approval, regular reporting, audits and controls, performance monitoring, stakeholder involvement, and transparency measures. These controls help Saxony-Anhalt manage the structural change funds prudently, maximizing the positive impact on regional development and minimizing risks of misuse or inefficiency.
Despite these efforts, only about five percent of the total funds for Saxony-Anhalt had been disbursed by July 2025, according to the IWH report. The average age in the region is high, and the population is projected to continue shrinking in the coming years. This underscores the urgency of the structural change and the importance of efficient and effective use of the funds.
As the transformation of Saxony-Anhalt continues, it will be interesting to see how the region balances its economic ambitions with the need for sustainable development and a growing, skilled workforce.
- The new education campus in Naumburg, Burgenland district, which is being built with funds from the structural change, will consist of four schools, a large sports hall, a soccer field, and workshops, emphasizing the focus on education sector as announced by the structural change task force.
- In the financing of the projects driven by the structural change funds in Saxony-Anhalt, it's crucial to not just focus on creating additional jobs but also to invest in vocational training and further education, as well as the recruitment of qualified workers, particularly from abroad, as suggested by Mirko Titze from the Institute for Economic Research in Halle (IWH).
