The Rocky Road of Battery Maker Northvolt: SVP and FDP Insist on Full Disclosure in Schleswig-Holstein Politics
SPD and FDP call for comprehensive approval: Northvolt project necessitates thorough examination - Democrats SPD and FDP urge complete disclosure of Northvolt's files
Hey there!
The financial woes of Swedish battery manufacturer Northvolt have turned the political scene in Schleswig-Holstein into a hot potato. The power struggle between the state government and opposition parties revolves around the disclosure of papers related to the proposed battery plant in Heide. Now, the SPD and FDP are pushing to unseal these documents through a mediation committee.
FDP representative Bernd Buchholz voiced concerns during a joint meeting of the Finance and Economic Affairs Committee in Kiel, as there's been a mix-up between the state government and opposition parties regarding the censorship of certain sections in the documents. It's uncertain if they'll reach an agreement.
So, a mediation committee must now rule on whether the state government must expose the blacked-out passages demanded by the SPD and FDP. Otherwise, this issue may find its way to the state constitutional court, Buchholz warned.
Elected officials of the various state parliament factions have been privy to the state government's documents on Northvolt promotion for some time now. The government has been revealing parts of these documents gradually, but heavily redacted. More meetings of the Finance and Economic Affairs Committee will take place at the start of July, and the timeline for the mediation committee remains unclear.
In the meantime, the question lingers on the state of knowledge the decision to issue the bond was made with.
Economics Minister Claus Ruhe Madsen (CDU) stated in the committee that, given the current knowledge, there's much to question and criticize. He denied that expert warnings were disregarded while approving the bond, alleging the decision was based on a study by auditing firm PwC – which, curiously, remains hidden away in the federal Ministry of Economics.
Northvolt declared bankruptcy in Sweden on March 12. The future of the factory under construction in Heide, Schleswig-Holstein, remains uncertain. Initially, it was thought that the German project company would remain unaffected by Northvolt's bankruptcy, but more details are still to be revealed.
How much will Northvolt cost Germany?
The actual cost of Northvolt's demise to Germany is yet to be determined, but here are some factors that may contribute to the financial strain:
- Guarantees and Loans: Northvolt got around €600 million from Germany's KfW development bank for constructing its factory near Heide. This includes €20 million for interest and other expenditures. Approximately half of the convertible bond has already been used up[1].
- EU Funding: The EU Commission gave the green light for direct loans from the federal and state governments totaling approximately €700 million, but this money has not been handed out yet[1].
- Job Losses and Economic Impact: Northvolt's insolvency will also lead to job losses and economic consequences in regions where it operated. While the exact financial blow to Germany from these aspects is not specified, it's anticipated to be significant.
In conclusion, the actual cost to Germany is still undetermined, but it involves considerable guarantees and loans that have been, in part, consumed, as well as potential implications from the planned EU funding that has yet to be distributed.
Northvolt
- FDP
- Insolvency
- Schleswig-Holstein
- Disclosure
- Buchholz
- Battery plant
- Kiel
- EU Funding
- Germany
- Bankruptcy
- The ongoing dispute in Schleswig-Holstein politics centers around the disclosure of documents related to the proposed battery plant in Heide, specifically concerning Northvolt.
- FDP representative Bernd Buchholz has raised concerns about the censorship of certain sections in the documents, calling for full disclosure through a mediation committee.
- In the realm of business and finance, the actual cost of Northvolt's demise to Germany remains undetermined, but it involves substantial guarantees and loans that have been partially used.
- The potential implications from the planned EU funding, yet to be distributed, and the economic consequences of job losses contribute to the financial strain, making the cost to Germany significant.
