Tensions in Lusatia's territory remain severe
Lusatia, a region in eastern Germany, is currently undergoing a significant transformation, with the coal phase-out scheduled for 2038 serving as a catalyst for change. This transformation, according to Brandenburg's Minister President, Dietmar Woidke, is becoming a reality, and Lusatia is setting European standards for a successful structural change.
The unemployment rate in the Spree-Neiße district, part of Oberlausitz, was 6.0% in August, slightly higher than the previous year. However, the Niederlausitz, which belongs to Brandenburg, has a relatively low unemployment rate for the state's standards. Despite the job market challenges, the job agency in Cottbus promises to find suitable jobs for anyone considering a return or move to the Lusatian region through the website krasse-lausitz.de.
One of the key projects in this transformation is the conversion of the municipal Carl-Thiem Clinic in Cottbus into a university clinic. Approximately ten billion euros in funding are being allocated for the structural change in the Lusatian region, with 3.7 billion euros earmarked for the conversion of the Carl-Thiem Clinic. The first 200 medical students will begin their studies at the Carl-Thiem Clinic in the winter semester 2026/27.
The economic crisis is not entirely bypassing the Lausitz region. However, the region is showing promising signs of growth, with more new jobs being created than lost due to the coal phase-out, according to Klaus Freytag, Woidke's Lusatia representative. Yet, Freytag warns that more jobs will still be lost.
The Lusatian region's structural transformation has received about 10 billion euros in funding, largely allocated to public institutions like the Carl-Thiem-Clinic in Cottbus. Major financing also involves public stakeholders such as federal and state governments, municipalities, companies, and civil society groups collaborating on sustainable job creation and regional transformation.
However, the restructuring of Lausitzer Energie AG (LEAG) has been a source of controversy. LEAG, owned by EPH under Daniel Křetínský, has undergone restructuring, with claims that profitable parts were spun off, reducing the equity of the coal mining segment by up to 80% and potentially shifting environmental remediation costs to the public. Environmental organizations like Greenpeace and Deutsche Umwelthilfe have legally contested this restructuring to prevent public financial burdens from arising due to the coal exit.
The Bundestag passed the Coal Phase-out Act in July 2020, marking a significant milestone in Lusatia's transformation. Economist Axel Troost, who passed away in 2023, warned that companies might decide against settling in Lusatia due to a lack of skilled workers, as more residents are retiring than school leavers are entering the workforce.
Despite these challenges, Lusatia's transformation is progressing, with ambassadors like Clara Valerie, an ambassador of "Crazy Lausitz", finding numerous opportunities in the region. Valerie, who grew up in the region, found success as a young musician.
Woidke emphasises that the transformation can succeed in Lusatia if all stakeholders, including the federal government, municipalities, companies, and civil society, work together. He believes that a lot has happened in Lusatia in the past five years, and the region is on track to becoming a sustainable and future-proof job region. However, the future of the water level in the open-pit lake in Cottbus, once a popular bathing spot, remains uncertain.
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