The struggle for survival of Opel

The crisis at Opel is older than the economic crisis. For several years, Opel loses market share. A state aid for Opel cannot be justified. The struggle for survival of Opel is older than the economic and financial crisis. Even before the outbreak of the crisis, the market share of Opel declined continuously. The first state aid in 1992 was due. Correct the situation was dramatic but in autumn 2008. Because of wrong decisions of parent company General Motors, Opel plunged into crisis.

After scrapping, the so-called bridge loan and the failed takeover by Magna, the debate about state aid went into another round. This seems to be slowly closed. So after the vote by the Federal Ministry of Economics and the turn-Chancellor of a help from the federal government is no longer expected. It is commendable that the government stop here requires. Nevertheless seems unbroken desire of countries to aid for Opel.

Eager to discuss new ways to grab Opel one more time on the ground. You can see over it seems like GM has tried last summer with insolvency threat to blackmail government assistance. And thanks to U.S. government aid and bankruptcy last summer, GM is economically back quite solid. 17 billion cash and cash equivalents are valued. Of course, Opel will adhere without government assistance to the core principles of the reorganization plan. It is assumed that the statements made to state aid but also controlled rear guard actions of state governments. After all, the countries must spend their own money and to answer to the voters in the country. This makes financing more difficult.

Mini package is not enough

22 billion will be spent this year for active labour market policies. These items must also be analysed. The measures announced by the consolidation of the federal budget are the bare minimum to comply with the Constitution. It is a state, which living beyond its means. The measures are not sufficient. If things do not change, the high inflation rate will threaten the welfare recipients, the unemployed and pensioners. It is then necessary to pay the price in the medium term with high consumer prices. Without further cuts in the area of labour and social ministry, it is not possible.

In the same time, this includes an honest discussion of the active labour market policy and the grant of federal pension insurance.

This entry was posted in Uncategorized. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.

Comments are closed.