The head of Ifo voiced opposition to the nationalization of Thyssenkrupp.
Clemens Fuest, from the Munich Ifo Institute, voices concern against government intervention in Thyssenkrupp's struggles. "Typically, the government shouldn't lend a hand to faltering companies. German steel production has been on a downward spiral for years due to cheaper production costs and superior capabilities in steel production from emerging nations. German companies need to adjust to this reality," Fuest shared with the "Rheinische Post". He also advised against making decisions on aid for Thyssenkrupp during election periods, as it might distract from substantial issues.
Fuest proposed alternative methods to aid the industry. "Geopolitical factors may necessitate preserving steel production to some extent, considering the armaments industry's reliance on a steel supply during crises. A joint security plan with European partner countries could be developed and implemented, yet this should not be tied to individual struggling companies," Fuest suggested. Chancellor Olaf Scholz had previously expressed that no option was off the table for Thyssenkrupp. Scholz stated in Funke newspapers, "I'm keeping all options open regarding state participation." The Union, however, has already voiced opposition to the idea.
Outrage over CFO Schulte's departure from Thyssenkrupp
Meanwhile, the German Shareholders' Association (DSW) expressed displeasure at the sudden exit of Thyssenkrupp's CFO, Jens Schulte. Marc Tüngler, DSW's head, expressed concern to the newspaper, "Jens Schulte's departure from Thyssenkrupp is ill-timed. The company requires steady financial leadership at this juncture. The supervisory board must now find a replacement board member." Tüngler also criticized the circumstances surrounding Schulte's resignation, "Jens Schulte's behavior leaves much to be desired. He accepts a prominent role at Thyssenkrupp only to move on to Deutsche Boerse a few months later. The supervisory board is disappointed," Tüngler said. "It's inappropriate that Schulte received a signing bonus of 1.8 million euros in three installments upon joining Thyssenkrupp," Tüngler added. The DSW head demanded, "Schulte should repay the already received sums and renounce his claims. That would be the right thing to do."
A representative for Thyssenkrupp commented, "Signing bonuses are commonly awarded during board changes, especially when new board members commanded higher salaries at their previous employer or forfeited benefits from their former position." The supervisory board and Schulte will now negotiate the specifics, as the spokesperson stated, "Mr. Schulte has requested the supervisory board of Thyssenkrupp AG to mutually terminate his board position. The supervisory board will soon discuss the details of this termination." Tomorrow, the supervisory board of the steel division will convene to address the critical points of the job cuts in the steel sector.
The German Shareholders' Association (DSW) acknowledged the timing of Jens Schulte's departure from Thyssenkrupp as 'otherwise ideal,' stressing the need for stability during the company's current financial challenges. Despite the situation, Clemens Fuest from the Munich Ifo Institute remains opposed to government intervention, advocating for alternative methods to aid the industry.
