The German employers warn of the danger of insolvency of many companies
Fearing a string of corporate insolvencies and a deep economic recession in Germany, Federal Chancellor Olaf Scholz has promised to extend aid measures to the German economy. “We are working frantically to expand the current programs,” Scholz said Tuesday in a speech before the German employers’ congress, in which he encouraged companies to pay their employees extra pay so that they can cope with rising costs. electric. “The federal government has decided to free these extraordinary payments of up to 3,000 euros from taxes and social fees if employers and unions agree,” said the Social Democratic politician, who hopes that companies also make their contribution to concerted action.
Shortly before, the Federal Minister of the Economy, the green Robert Habeck, had announced new measures to support small and medium-sized companies, many of them with production problems and even the threat of insolvency due to the dizzying rise in energy prices. . Habeck stressed that SMEs with high energy consumption will have subsidies as soon as possible to meet their electricity and gas bills. It all depends on how quickly the three parties of the government coalition, Social Democrats, Greens and Liberals, agree, said the also federal deputy chancellor.
Rainer Dulger, president of the German employers’ association, had warned that, due to the gas crisis and high inflation, the country is threatened with recession despite the aid projected by the Berlin executive. “The German economy is facing the current situation with great concern about Germany’s competitiveness as an economic location,” Dulger stressed at the congress. He added that the German economy is struggling against “a dramatic economic situation, immensely high energy prices and strong shortages in the supply of raw materials, pre-processed products and other goods”, although it has repeatedly shown in the past that it can be an anchor of stability for Germany. and Europe.
“That is the signal we intend to send today and in the future. If we strengthen the economy, we strengthen this country and secure employment,” said Dulger, president of the Confederation of German Employers (BDA), who in statements to the morning news of German public television ARD had demanded rapid and effective aid for small and medium businesses. “SMEs must be protected,” he stated emphatically. Scholz, for his part, recalled the progress made in the fight against the energy crisis due to the cut off of gas supply by Russia due to the sanctions for the invasion of Ukraine. The foreign minister stressed that two nuclear power plants that were to be closed at the end of the year will continue to operate in 2023 to avoid failures in the electricity supply and was convinced that the port terminals for liquefied gas will come into operation by the end of next year.
“At the end of next year we will be in a position to be able to import all the gas we need,” assured the head of the Berlin government. Scholz specifically referred to the liquefied gas terminals that will come into operation in Stade, Wilhelmshaven, Brunsbüttel and Lubmin, but also to the gas pipelines from Norway and the Netherlands. The German executive will see to it that the price of gas falls again, said the Federal Chancellor, who also underlined the tripartite’s commitment to the necessary and urgent energy change. “Hydrogen is the gas of the future and we will cause a ‘boom’ to occur,” he stressed, while promising that his executive will approve this year all the laws that are necessary to accelerate all the plans aimed at promoting renewable energies. alternatives.
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