Lindner makes taxpayers pay for US financial firm!
Austerity measures have been announced and each federal ministry has been asked to submit concrete proposals for cost savings. But in the meantime, something is happening that raises questions.
The 600 million euro scandal
Around 600 million euros of taxpayers’ money is being allocated to a US financial investor. How can this happen? The tour operator FTI received substantial loans during the coronavirus crisis. Only a fraction of these loans have been repaid so far. In addition, the company received guarantees amounting to 250 million euros from the federal government and the state of Bavaria.
A few weeks ago, Federal Finance Minister Lindner publicly declared that these funds would definitely be reclaimed. But suddenly the situation changed. The tour operator FTI is largely owned by an Egyptian billionaire family who now want to sell the company. An American financial investor called Certares is ready to acquire FTI for a symbolic euro, along with the revenue generated by customers’ advance payments for booked trips, for example. But what about the debts? Of course, the financial investor does not want to take on this debt.
The shell game trick
The federal government is planning to sell FTI’s debt at a bargain price. Hedge funds and financial investors are usually interested in this, speculating on a profit from the cheap debt. In this case, however, the financial investor Certares is also buying the debt. Not regularly, but in one of these favorable debt packages that actually come from German taxpayers’ money. The exact amount that Certares is paying for this debt is not yet publicly known.
The effects
If this deal goes ahead, German taxpayers will have to bear a considerable proportion of this debt. Such an approach represents an unjustified disadvantage compared to other companies that have already repaid or will have to repay their state aid in full. In addition, FTI’s competitors, such as Lufthansa and TUI, have also received coronavirus aid that has already been repaid in full.
The reactions
Lufthansa and TUI are already putting their lawyers on the case, as they will not accept this unjustified discrimination.
Furthermore, the actions of the Federal Minister of Finance raise serious questions about the integrity and transparency of our government. While citizens are being asked to pay to stimulate the economy and implement austerity measures, some companies and investors appear to be profiting from questionable deals at the expense of taxpayers.
We will keep you up to date on the further development of this deal.
