Ifo President criticizes possible state aid for Siemens Energy: Financial expert warns against misuse of taxpayers' money.

Ifo President criticizes possible state aid for Siemens Energy: Financial expert warns against misuse of taxpayers' money.

According to a report from www.sueddeutsche.de, the President of the Ifo Institute, Clemens Fuest, criticizes possible state aid for Siemens Energy. He sees no convincing justification for the state to support the company financially or with guarantees. According to Fuest, this support means a transfer of taxpayer money to the creditors and shareholders of Siemens Energy, who should actually be held liable. He emphasizes that it is the task of creditors and shareholders to restructure the company and waive claims.

According to Fuest, the production of wind turbines could continue or wind turbines could be imported from other countries if Siemens Energy were to stop production. He argues that self-sufficiency in this area is unnecessary and not necessary for the energy transition.

Siemens Energy has asked the state for help due to problems in the wind power business. The company is struggling with billions in losses and confirmed talks with the federal government about state guarantees. According to media reports, this involves up to 15 billion euros. The federal government sees Siemens Energy as relevant for the transformation of the German economy towards climate neutrality.

The possible state aid for Siemens Energy is controversial. Opponents argue that this aid would result in a transfer of taxpayer money to the company's creditors and shareholders, which is unjustified. Supporters, on the other hand, see Siemens Energy as an important company for the energy transition and climate neutrality in Germany.

The effects of this state aid can be diverse. On the one hand, the government guarantees could strengthen investor confidence and stabilize the company financially. This could lead to continued production of wind turbines and preserve jobs. On the other hand, government aid could also meet with resistance and affect the trust of creditors and shareholders. This could have a negative impact on the financial industry and lead to a loss of investments.

It remains to be seen how the negotiations between Siemens Energy and the federal government will go and whether government aid will ultimately be provided. The outcome of these negotiations will have a decisive influence on the future of Siemens Energy and the market in the financial sector.

Source: according to a report from www.sueddeutsche.de