Dhe time for gifts is over. Further investment packages worth millions, for example for the expansion of local transport, will probably not be put together in Mainz for the foreseeable future. Because after two years with extraordinarily high tax revenues – of around 1.2 billion euros each time – the city, which has been able to look forward to brilliant business from the vaccine manufacturer Biontech SE since the beginning of the corona pandemic, has to bake much smaller rolls again from now on.
Although this development was foreseeable, the extent and speed of the downturn surprised the head of the finance department, Mayor Günter Beck (Die Grünen). A few days ago, the Mainz flagship company from the gold mine presented the figures for the first quarter of 2023: According to this, Biontech sales from January to March fell by around 80 percent compared to the same period last year to almost 1.3 billion euros. At a good 500 million euros, net profit was also well below the figure of 3.7 billion euros determined for the first quarter of 2022.
The company, which has become known worldwide for its Covid-19 vaccine and itself speaks of a transitional year, had expected the current development to be about the same. One deals with new vaccine variants in order to be prepared for all cases, it said. In addition, a more seasonal demand is expected in the future, so that sales and profits should increase towards the autumn. Last but not least, intensive work is being done on the production of individualized mRNA cancer vaccinations, the actual research focus of the Mainz scientists.
Equity was increased significantly
At the latest since May 5th, when the World Health Organization lifted the international health emergency it declared on January 30th, 2020 in view of the weakening corona pandemic, all those responsible in the city hall should have been clear that the “miracle of Mainz ‘ may soon come to an end. After two years with extraordinarily high trade tax revenue, Beck is now saying that a supplementary budget will probably have to be approved in the fall; and for 2023 a larger double-digit million deficit is to be expected.
Instead of the originally expected trade tax revenue of around 620 million euros, it could end up being only 350 to 400 million euros. However, the state capital of Rhineland-Palatinate, which used to be hopelessly indebted, does not currently have to worry. After all, thanks to the bubbling tax revenue, equity capital has been increased to well over two billion euros in recent months.
“Conservative budget policy” and smart investments
Everyone knew “that there is no inexhaustible cornucopia,” said the Mainz Greens about the new quarterly figures. Beck’s “conservative budgetary policy”, which also includes a critical examination of expenditure, is the only way to prevent the accumulation of a new mountain of debt – and to give future generations their own leeway.
Groundbreaking: The foundation stone for a new biotech and life science campus was recently laid with the laboratory and office building LAB 1.
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Image: dpa
Right from the start, the declared goal of the Mainz-based company was to become independent of Biontech’s success as quickly as possible with the support of the state. What Lord Mayor Nino Haase (independent) reaffirmed at the groundbreaking ceremony for the biotech and life science campus earlier this month. In the next few years, various investors are planning to invest a total of one billion euros in the fields between the football stadium, the university and the Europakreisel, in order to establish new research companies and scientific institutes at this location, which in turn will ideally create up to 5,000 additional jobs for the city of Mainz could.
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