Shipbuilding - SPD and Greens open to Federal aid for Meyer Werft
The SPD in the Bundestag advocates for state aid for the struggling Meyer Werft. The economic policy spokesperson of the Bundestag faction, Bernd Westphal, told the German Press Agency: "The Meyer Werft and the Papenburg site should be urgently supported by the federal government and the state of Lower Saxony. The Meyer Werft is a company with a future, which will also contribute to growth and prosperity in Lower Saxony and beyond in the long term." Green budget and economic policy politician Felix Banaszak also expressed support for federal aid.
Yard in Crisis
The well-known yard for its cruise ships is in the gravest crisis in its more than 200-year history. The yard currently has orders up to 2028. However, some contracts for cruise ships were signed before the Corona pandemic. Due to the temporary decline in the tourism market, these contracts were extended in agreement with the shipping companies. However, they do not see any adjustment to the drastically increased energy and raw material prices due to the Russian attack on Ukraine. The company must raise more than 2.7 billion euros by the end of 2027 for the financing of new shipbuilding projects. Guarantees from the federal government and the state of Lower Saxony are considered possible.
Green: Reason for Hope
Federal Chancellor Olaf Scholz (SPD) had already hinted at federal support for the struggling Meyer Werft. "The restructuring report seems to give reason for hope that the company has a future in the long term," Banaszak said. "That's why it's right that the federal government and the state intensively examine state aid to bridge the financial crisis. If the federal government comes to the budget committee with a concrete strategy, we will look at it openly." However, some hurdles - such as EU subsidy conformity for possible measures - still need to be considered.
"It's good that some of the necessary conditions for a state bailout have been met temporarily and that a supervisory board and a works council have finally been appointed," Banaszak said. "The era of patriarchal corporate structures is over. Co-determination and control protect against business mistakes."
Significance of the Yard
"The Meyer Werft has unique skills in shipbuilding and intends to diversify its portfolio in the future, for example, with a focus on urgently needed converter platforms," Westphal, who comes from Lower Saxony, said. The yard in Papenburg employs around 3,300 employees. "These jobs need to be saved," Westphal said. "I am optimistic that the federal government, the state, banks, and the yard will find a viable solution soon to save the site and contribute to the future of the maritime industry in Germany."
Change Structures?
The current situation of the Meyer Werft shows that the maritime industry in Germany needs to be structurally supported, so that it can compete with other European and international actors, Westphal said.
Banaszak said: "Whether a strategy focused on building ever larger cruise ships in the civil shipping industry can permanently meet ecological and social requirements is questionable. These open questions must also be taken into account in the upcoming decisions."
- The SPD in the German Federal Parliament has called for state aid for the ailing Meyer Werft GmbH, a prominent shipbuilding company based in Papenburg, Germany.
- The yard, with a rich history spanning over 200 years, is currently in its gravest crisis, largely due to the impact of the Coronavirus on the tourism market and increased energy and raw material prices caused by the Ukraine conflict.
- The SDP's economic policy spokesperson, Bernd Westphal, urged the federal government and Lower Saxony's state government to provide support to Meyer Werft, highlighting its significant contribution to the region's economy and growth.
- Green budget and economic policy politician Felix Banaszak echoed the call for federal aid, stating that a concrete strategy from the federal government should be examined carefully by the budget committee.
- Olaf Scholz, the Federal Chancellor and an SPD member, has hinted at potential federal support, seeing hope in the restructuring report that suggests a long-term future for the shipyard.
- The appointment of a supervisory board and a works council at the yard, as well as temporary resolution of some necessary conditions for a state bailout, have been welcomed by Banaszak, who believes in the importance of co-determination and control to prevent business mistakes.
- The future of the Meyer Werft lies not only in its unique shipbuilding skills but also in diversifying its portfolio, according to Bernd Westphal, who emphasized the need to save the 3,300 jobs at the site and contribute to the future of Germany's maritime industry.
- Westphal further highlighted the need for structural support to the maritime industry in Germany, ensuring its competitiveness against European and international actors, and expressed concern about the ecological and social requirements of continuing to build large cruise ships.
