Conditions for energy price brake: DGB criticizes dividend ban

Status: 29.12.2022 08:50 a.m

Corporations that are relieved of more than 50 million euros by the energy price brake are not allowed to pay either employee bonuses or dividends. The criticized DGB boss Fahimi. She warns of a creeping deindustrialization.

By Lothar Lenz, ARD Capital Studio

DGB Chair Yasmin Fahimi has warned of a loss of industrial jobs in Germany. The most important reason for this development is the high energy prices, Fahimi told the dpa news agency.

The DGB boss criticized the fact that companies supported by the energy price brake are not allowed to pay dividends. In the new year, the federal government wants to cap energy prices for private households and companies. Industrial companies for which these government energy subsidies account for more than 50 million euros will then no longer be allowed to pay bonuses to their senior employees or distribute dividends to their shareholders.

This so-called ban on dividends was controversial in the traffic light coalition until the very end. The chairwoman of the German Trade Union Confederation now fears that industrial companies will forego state energy aid in order to be able to continue paying dividends.

Fahimi warns against de-industrialization

If the energy price brake actually comes to nothing, that will reinforce deindustrialization, said Fahimi. The DGB chairwoman appealed to the federal government to ensure competitive energy prices in Germany as soon as possible.

The unions would put the issue of how to ensure competitive industrial electricity prices high on the agenda in talks with the federal government next year. “The deeper the cuts in the value chain, the more companies in the value chain leave Germany, the more dramatic the domino effect will be.”

Industry President Siegfried Russwurm told the dpa that Germany as a business location has numerous “handicaps” and is losing competitiveness. DIHK President Peter Adrian also warned of an increasing outsourcing of production abroad.

DGB boss criticizes dividend ban for large companies

Lothar Lenz, ARD Berlin, December 29, 2022 7:35 a.m

source site