"Unworldly, aloof, haphazard": Habeck Ministry improves after criticism of bankruptcy statements

Created: 07/09/2022, 21:55

By: Christina Denk

Economics Minister Robert Habeck caused outrage at "Maischberger" with statements about bankruptcies of bakers and organic shops.

Now the ministry is explaining it.

Berlin – Gas levy, nuclear power plant extension, bankruptcy statements: Minister of Economics Habeck currently seems to be getting more and more entangled in the criticism.

Even with the gas levy, there was malice and headwind when it became clear that large gas importers could also benefit.

In the ARD talk “Maischberger”, the otherwise popular minister not only left the moderator confused.

The opposition and civil associations reacted angrily.

Robert Habeck with controversial bankruptcy statement at "Maischberger"

Specifically, it is about the question: "Do you expect a wave of insolvencies at the end of winter?" Robert Habeck answered this after finding out from vague statements: "No, I don't do that.

I can imagine that certain sectors will simply stop producing for the time being.” The minister cited flower shops, organic shops and bakeries as examples that “rely on people spending money.”

With this statement, he initially left Maischberger confused, but later added: "Then they are not automatically insolvent, but they may stop selling." The video shows the entire excerpt in which Habeck talked himself into a shitstorm .

Insolvency statements at "Maischberger": Opposition and industry clearly criticize Habeck

The statements by the Economics Minister caused a lot of criticism.

"Unworldly, aloof, aimless.

Economics Minister Habeck has no idea about economics, he stands for economics," said CSU General Secretary Martin Huber on Wednesday.

Secretary General Mario Czaja summarized it almost humorously on Twitter: "Green economic policy, explained by our Federal Minister of Economics: You are not broke.

You just don't have any more money.

Next chapter: This is not a blackout.

We're just out of electricity."

Union parliamentary group leader Friedrich Merz held Habeck up against his helplessness in the crisis directly in the Bundestag during the general debate.

"One can only hope that the majority of medium-sized German entrepreneurs, especially the bakers, were already in bed and asleep at this time and didn't have to watch what they said last night." The bewilderment the bakery industry commented on Wednesday on Twitter.

Ministry explains minister's statements: bankruptcy and 'silent operations'

The Bundestag's Ministry of Economic Affairs did not leave its minister's statements uncommented after the broadcast.

It said on Wednesday that Habeck wanted to explain the risk of "silent operational tasks", i.e. operational tasks without filing for bankruptcy.

The government must keep an eye on both.

"Looking at the insolvencies alone" does not go far enough.

Insolvency and "silent business closures"

As the Ministry of Economic Affairs explained, the purpose of the insolvency procedure is to “preserve the company as far as possible in a structured procedure.

On the other hand, business closures mean that businesses give up without filing for bankruptcy because they see, for example, that their business is simply no longer worthwhile due to high energy costs.

Closing down operations is not synonymous with insolvency.” Impending closures due to high energy costs are “a serious problem, especially for small and medium-sized companies,” it continues.

Habeck already emphasized at "Maischberger" that the federal government is working "at high pressure" on support programs to help bakeries and other companies.

It has not yet been clarified whether politicians will assume the costs in full, as in the corona pandemic.

The bakery trade criticized: "Despite the promise of the federal government not to leave anyone alone, the bakery trade has so far lacked effective support."

After bankruptcy statement: Federal government announces relaxation of bankruptcy law

In addition, the federal government announced on Wednesday (September 7) that it intends to relax insolvency law quickly.

"Companies that are essentially healthy and able to survive in the long term under the changed framework conditions should benefit from this," a spokesman for the Ministry of Justice told the

.

This should give companies time to adapt their business models.

Specifically, it is planned that companies will no longer have to prove their secure continued existence for a whole year, but only for the next four months.

This should not apply to insolvent companies.

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Irrespective of the ministry's correction, however, one thing is clear: Robert Habeck is currently knitting himself into proposals that require explanation.

His statements about extending the nuclear power plant runtimes at Neckarwestheim 2 (Baden-Württemberg) and Isar 2 (Bavaria) caused confusion on Wednesday.

The nuclear power plant operator of the Isar 2 plant made it clear in writing: The way Habeck imagines the emergency reserve is not technically feasible.

The minister saw it differently.