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Outrage about Habeck's insolvency sentences - but top economist protects him

2022-09-09T04:00:47.151Z


Outrage about Habeck's insolvency sentences - but top economist protects him Created: 09/09/2022 05:37 By: Patricia Huber Robert Habeck caused outrage with his statement about bankruptcies in bakeries. Now the economics minister is backed by a top economist. Berlin – There are only a few minutes in Sandra Maischberger's show that cause a lot of attention. On Tuesday evening, the talk show host


Outrage about Habeck's insolvency sentences - but top economist protects him

Created: 09/09/2022 05:37

By: Patricia Huber

Robert Habeck caused outrage with his statement about bankruptcies in bakeries.

Now the economics minister is backed by a top economist.

Berlin – There are only a few minutes in Sandra Maischberger's show that cause a lot of attention.

On Tuesday evening, the talk show host asked Economics Minister Robert Habeck whether he expected a wave of bankruptcies in Germany at the end of this winter.

The answer of the Green politician: "No, I don't do that.

I can imagine that certain industries will simply stop producing for a while.”

Habeck cites flower shops, health food shops and bakeries as examples because these shops “depend on people spending money”.

"Then they are not automatically insolvent, but they may stop selling," says Habeck - and thus causes a mixture of malice and indignation on the Internet and among the opposition.

Habeck statement: Baker outraged – "Are you serious?"

This is also the case with the Central Association of the German Bakery Trade.

He writes on Twitter: “Mister Minister, are you serious?

When bakers stop producing, does the business simply come to a standstill?

Wages, contracts continue, you give it a quick wipe, and when the war is over, do the ovens start up again?”

But Habeck's Economics Ministry quickly finds an explanation for the politician's unfortunate statement.

In a longer statement, it says that Habeck wanted to explain that the risk of "silent business closures", i.e. business closures without filing for bankruptcy, represents a problem for an economy and that the government must keep an eye on both.

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

For small and medium-sized companies in particular, imminent tasks are a "serious problem" due to the high energy costs.

The federal government has that on the screen.

DIW boss agrees with Habeck

The head of the German Institute for Economic Research (DIW), Marcel Fratzscher, agrees with Habeck on Twitter.

"I don't understand the criticism of Minister of Economics Habeck's statements on insolvencies, because they are correct," he writes.

For example, hotels may have to close in winter because there are fewer travelers but energy costs continue to rise.

"Temporary closures are not uncommon in the industry," Fratzscher makes clear.

As a second example, the economist cites energy-intensive companies that would probably have to stop production in the event of a gas emergency.

However, this is only possible if the state compensates these companies sufficiently so that they can reopen later.

However, Habeck did not talk about these state measures in conversation with Maischberger.

"But given the current level of uncertainty, it's wise not to do this," Fratzscher agrees.

(ph/dpa)

Source: merkur

All news articles on 2022-09-09

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