The collapse of Opel, a unit of the struggling American automotive giant General Motors, could cost German taxpayers up to three billion euros, and it would be better to save it, said German Finance Minister Peer Steinbruck on Sunday.
If 25,000 workers at Opel and approximately the same number in supplier companies lose their jobs, it would be costly for the state, viewed from the perspective of unemployment benefits and loss of tax revenue, Steinbruck said in an interview with television station ARD."Wouldn’t it be more logical to help the company so that people can continue to earn a living?" the minister asked. Like its parent GM and numerous automotive companies šaround the world, Opel has recorded a sharp decline in sales due to the worst economic crisis in decades. The government in Washington has approved billions of dollars in aid to GM to help it weather the crisis.
However, GM’s restructuring plans are radical and include the sale of numerous foreign operations, the abandonment of some brands, and the elimination of thousands of jobs. The German minister emphasized that Opel must decide for itself whether to take the necessary measures before the possibility of state aid is considered."I want to first see a restructuring plan for the company, the steps they are willing to take before they consider whether they need government assistance, as a last resort," Steinbruck emphasized.
