Federal government takeover of grid operator Tennet falters, leaving national treasury in perilous condition

Federal government takeover of grid operator Tennet falters, leaving national treasury in perilous condition

Germany's largest transmission network operator, Tennet, oversees a major North-South corridor stretching from the North Sea to the Austrian border. This means a substantial chunk of the funding for network expansion, particularly the key North-South corridors, needs to be hashed out with the Dutch government. Consequently, the federal government was keen on nationalizing the company.

However, Tennet expressed its intentions to secure funds for network expansion through "tapping into public or private capital markets." The federal government indicated its readiness to back such alternative solutions, according to the company.

Energy Minister of Schleswig-Holstein, Tobias Goldschmidt (Greens), voiced his disappointment over the collapsed takeover talks. "This is another illustration of how the debt limit is a hindrance to the future," he stated. "A state intervention at Tennet would have been right from a climate policy standpoint. It was also absolutely essential from a safety and economic policy viewpoint."

Likewise, Stefan Körzell, a member of the German Trade Union Executive, shared his thoughts: "The federal government taking over Tennet would have been key in pushing network expansion." He pinned the blame on the "budget chaos instigated by the FDP" for this, asserting that "Germany should no longer be held back by it."

Read also:

1. The potential takeover of Tennet by the Federal Government hinged on securing funding, particularly for the North-South corridors, which would involve negotiations with the Dutch government.
2. Despite the Federal Government's intentions to nationalize Tennet, the company proposed securing funds through the capital markets, a proposal that the government was willing to support.
3. The Treasury's budgetary situation could be impacted negatively if the federal government's takeover of Tennet fails, as reported in recent news.
4. According to Tobias Goldschmidt, the Energy Minister of Schleswig-Holstein, a state intervention at Tennet would have been beneficial from a climate and economic policy perspective, but was hindered by the debt limit.
5. KfW Banking Group could potentially play a role in providing funding for network expansion at Tennet, if the federal government's takeover ultimately falls through.
6. The collapse of takeover talks with Tennet has prompted criticism from German Trade Union Executive member Stefan Körzell, who blames the "budget chaos instigated by the FDP" for the setback.

• Shift in appetite for dairy: From cultural norms to moral conversations
• This will change in December
• Dikes withstand water masses so far - Scholz holds out the prospect of help
• Fireworks and parties ring in 2024 - turn of the year overshadowed by conflicts