Bloomberg News

Europe’s Biggest Union Asks Germany to Soften Solar Subsidy Cuts

March 02, 2012

IG Metall, Europe’s biggest trade union, asked the German government to soften planned cuts to solar subsidies to avoid an increase risk of bankruptcies.

A plan to curb subsidies by as much as 29 percent this month may spread insecurity with investors and fail to reduce costs substantially, IG Metall, which represents about 3.6 million workers, said today in a letter to Environment Minister Norbert Roettgen and Economy Minister Philipp Roesler.

German companies are already facing “liquidity issues up to looming insolvencies,” IG Metall said. “We expect further cuts to make this situation worse.”

Germany, home to manufacturers including Q-Cells SE (QCE) and Conergy AG, should instead provide state loans for domestic companies to help them survive the threat posed by Chinese competition, the union said.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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