The federal government will reportedly fulfill its commitments for the establishment of an Intel factory in Magdeburg and a TSMC chip factory in Dresden despite concerns from the FDP and pressure from Saxony-Anhalt's Prime Minister Reiner Haseloff, according to insider information from Reuters. This decision was reportedly made by Chancellor Olaf Scholz and Minister of Economy Robert Habeck last Friday, as revealed by a person familiar with the matter. Haseloff stated in an interview with the "Tagesspiegel" that reliability must be demonstrated.

The reason for the discussion about state aid is the planned financing from the Climate and Transformation Fund (KTF), which is part of the 30 billion euro project. For the settlement of Intel, the federal government had promised up to ten billion euros, and around five billion euros were earmarked for the plans of the Taiwanese chip manufacturer TSMC in Dresden.

The FDP expressed concerns regarding the use of funds from the KTF and called for a review of the funding commitments to international corporations. This could also have an impact on the planned projects, experts warned.

Chancellor Scholz made it clear that the commitments will be honored and the federal government will also contribute to strengthening the domestic economy. A withdrawal of the commitments would not only have economic consequences but could also impair confidence in Germany as a business location.

Saxony-Anhalt's Minister-President Haseloff also emphasized the importance of adhering to the agreements between the federal government and the companies involved. It is crucial for the federal government to prove its reliability in such matters in order to attract future investments.

A lot is at stake for the federal government: not only economic promotion and the creation of new jobs, but also the image as a reliable partner for international investments. Therefore, the decision to stick to the commitments also has a political dimension that goes far beyond the two specific projects.

Finally, Saxony-Anhalt's Prime Minister Haseloff emphasized that they are confident that the already concluded contractual agreements will continue to be valid and that the federal government will prove to be a reliable partner.