Robert Habeck’s plan

Dhe federal government wants to get German companies to invest more abroad in countries other than China. At the suggestion of the Economics Minister, the traffic light coalition Robert Habeck (Greens) decided to revise the instrument of investment guarantees accordingly. This was announced by ministry circles.

With investment guarantees from the federal government, German companies protect investments in emerging and developing countries against political risks, such as possible expropriations or capital restrictions. Companies that want to invest in countries that account for more than 20 percent of the total cover volume of investment guarantees should in future pay a higher fee for the guarantees, 0.55 instead of 0.5 percent of the project volume. In addition, a cap will be put in place, with a maximum of 3 billion euros per company and country to be secured in the future.

Most recently, the investment guarantees granted by the federal government totaled around 29 billion euros. According to information from the FAZ, almost 38 percent, 10.8 billion euros, were accounted for by China. Companies can have a maximum of 95 percent of their investment sum insured.

It is no coincidence that the planned change in the conditions has just become public: Habeck is with a business delegation at the Asia-Pacific Conference in Singapore this weekend. There, too, greater diversification will be at stake. However, DAX companies such as BASF and Siemens have recently made no secret of the fact that they dislike the China-critical course of the green ministries in the traffic light coalition. In early summer, the Ministry of Economic Affairs rejected a request from Volkswagen to extend investment guarantees in China because of the VW plant in Xinjiang. In the province, the Uyghur minority is oppressed.

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