Government advocacy group pushes for financial aid for struggling businesses - Urgent call for crisis intervention for distressed businesses by DGB
In a pressing appeal, the German Trade Union Confederation (DGB) has demanded an immediate rescue program to secure industrial jobs in the region of Thuringia. Renate Sternatz, deputy chairwoman of DGB Hesse-Thuringia, made the demand during a press conference in Erfurt, Thuringia.
The DGB's proposed rescue program is aimed at helping struggling companies in Thuringia, particularly those in the automotive and supplier industries, energy-intensive sectors, and other businesses currently facing an existential crisis. The demand comes as a response to the threat of deindustrialization in Thuringia, a concern that poses a significant risk to democracy and social cohesion, according to Sternatz.
While the details of the DGB's proposed rescue program are yet to be disclosed, it is expected to focus on protecting jobs and ensuring fair labor practices. The DGB urges the state government to act immediately to prevent deindustrialization in Thuringia.
In a separate initiative, the Thuringia Credit program was launched to provide financial assistance to companies of all sizes and individuals looking to purchase company shares. Presented by Minister of Economics Colette Boos-John (CDU), the program offers a subsidized loan volume of 100 million euros. However, Sternatz finds the Thuringia Credit program insufficient to secure industrial jobs and businesses in Thuringia.
In April, a medium-sized business fund was launched in Thuringia to provide financial injections to growth-oriented companies. The Thuringia Credit program, intended for companies of all sizes, may also offer some support to struggling businesses. However, it remains to be seen whether it will be enough to prevent the potential loss of several thousand jobs at risk in the region.
As the economic downturn continues to impact businesses across Thuringia, the DGB's call for a rescue program underscores the urgent need for action to protect industrial jobs and ensure the region's economic stability.
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