"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Friday, May 2, 2014

German workers paying for a gigantic job destruction program

Alarm bells are ringing loudly in Germany as an investor body warns Deutsche Bank AG of the high risks of investing in dodgy renewable energy companies.With German power prices 50% higher than competing nations energy intensive industries are relocating to the US and elsewhere in Europe to lower costs. From the NoTricksZone:
The Verbraucherzentrale für Kapitalanleger [Consumer Agency for Investors] has sent an open letter to Jürgen Fitschen, the spokesman of the board of directors of Deutsche Bank AG, warning of engagement in the sector of renewable energies. The VzfK especially requests a critical review of customer relations to controversial project developer juwi AG based in Wörrstadt.
The VzfK argues that the spectacular insolvency of Prokon, Windwärts, Windreich, Solar Millennium AG and many other dubious renewable energy companies leads us to expect further damage not only to capital investors, but also to shareholders of credit institutes due to the sheer grievances in the sector of renewable energies. The VzfK requests the Deutsche Bank board of directors to assure that the damage to Deutsche Bank AG, its shareholders, and customers be minimized through appropriate portfolio measures and credit decisions. Especially requested is a critical review of the credit engagement that has come under fire because of the corruption scandal in Thuringia and controversial wind projects in the Hochtaunus nature reserve by project developer juwi AG.
Referring to the federal government’s Council of Expert Advisors the VzfK expects the EEG renewable energy feed-in system has to collapse and that economic damage of at least triple-digit billions are to be expected. Already today consumers are groaning and German industry are burdened by ludicrously high costs compared to other European countries and internationally. Energy prices are often more than 50% higher than those in neighboring countries or in the USA. In other words: German workers, as electric power customers, are paying for a gigantic job destruction program. The EEG system is only forcing the chemical industry and other energy-intensive industries to move abroad.
Dr. Martin Weimann, Chairman of the VzfK: “We ask the board to use the societal and political influence of Deutsche Bank AG to act to bring about a stop to the EEG feed-in system and to usher a fundamental reform for the interests of the stakeholders.