- Expert Expresses Lack of Valid Justification for Saving Meyer Shipyard
The intended financial assistance to shipbuilder Meyer Werft, famous for its cruise ships, leaves economist Marcel Fratzscher perplexed. " frankly, I can't fathom why this company requires such critical support for Germany currently. It doesn't," he shared with NDR, serving as the head of the German Institute for Economic Research Berlin.
Fratzscher further highlighted that the state can't possibly intervene in every company's predicament. "It's crucial to acknowledge that we can't undertake everything in Germany. We can't produce every product."
The economist also raised concerns over Meyer Werft's commercial viability. "What's genuinely disturbing is that a business is struggling, yet no private investor is willing to join forces, even with such generous government assurances," he remarked. "That ought to serve as a flag warning that this company may not have a stable future ahead."
The federal government and Lower Saxony state have pledged state aid to Meyer Werft, aiming to bridge an approximately 2.8 billion euro funding gap by mid-September. However, the final decision on the rescue remains undecided.
Reports from Berlin government circles indicate that both the federal government and Lower Saxony may contribute around 900 million euros in guarantees and temporarily acquire up to 80-90% ownership of the shipyard. Media reports also suggest that additional payments of 200 million euros would be necessary for this endeavor.
Fratzscher expressed his disbelief about the need for financial aid, stating, "I find it hard to comprehend why Meyer Werft is needing such substantial support at this point in time, given Germany's current economic situation." After the pledge of state aid, Fratzscher added, "Despite the potential investment from the government and Lower Saxony, it's still concerning that private investors are unwilling to throw their support behind Meyer Werft, raising questions about the company's long-term sustainability."
