2024-03-13 05:19:19
German authorities have canceled some business subsidies, which could lead to the collapse of family-owned companies that form the backbone of the German economy. This was reported by Bloomberg, Day.Az reports with reference to TASS.
“The situation is so tense that I’m not sure I would turn down an offer from an investor if I received one,” said the owner and chief executive of a refrigerated display company. Within weeks, the butchers and bakeries he worked with canceled their orders due to a lack of subsidies.
An additional complication was last year’s decision by the German Constitutional Court, which obliged the ruling coalition to stop excessive off-budget funding. Another problem is bureaucracy, which entrepreneurs say complicates work and distracts from day-to-day operations, as well as high energy prices. All this comes on top of the impact of the COVID-19 pandemic, from which family businesses have not yet fully recovered. This is pushing Germans to sell their companies, which was previously an extremely rare occurrence.
One of the most striking examples is the Viessman company, which produces heat pumps. The owner was forced to sell it to the American company Carrier Global Corp. for $13.1 billion.
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