Overview
- The Landesrechnungshof in a special report this week concluded the state government broke budgetary care rules by not sufficiently probing risks before supporting a KfW convertible loan for Northvolt.
- Opposition parties have summoned Minister‑President Daniel Günther to answer questions in the Landtag’s economic committee about the decision to back the loan.
- The state constitutional court is due to decide soon on an FDP complaint that deputies were not properly informed before the parliament’s January 2024 vote to approve the guarantees.
- Originally a €600 million KfW instrument was to be backstopped by federal and state guarantees split equally, but later corporate changes left Bund and Land able to secure only about €153 million and opposition estimates put the state’s exposure near €200 million.
- The government defends its actions by pointing to a PwC review and says it sees no breach of the Landeshaushaltsordnung, while auditors and internal cabinet papers show documented doubts about total project financing and a failure to insist on firmer financial documentation.