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|28 feb 2017|
Germany Is Short of Money to Spend for Economy Growth
German program of indemnifications for purchase of a new car in case of discarding of the old one terminates. The government is short of money. In January when the program was launched officials counted that 5 milliards Euro given for this program will be enough till the end of the year, however they didn't take into consideration enthusiasm of the population. "We have no means for payment of bonuses", - Federal department on economy and export control (BAFA) declared, Autonews informs.
For 8 months German market was undergoing artificial abundance. During this period more than 2 million people submitted applications for bonus in 2500Euro, demands for obtainment of economic cars were mostly satisfied. Taking into account bonus, the discount for new cars reached 40% - about 20 models in the market were sold with such discount, Opel Corsa Selection the discount for which reached 46,2% was recognized as the champion.
Now automobile Germany should pull in belt more tightly. At that the program end will influence all national economy: according to researches, the largest economy in Europe showed growth in 0,1% in the first half of 2009 in many respects because of issuing of that bonus. After the program termination it is expected that economic recession awaits Germany again. Car market will suffer especially, after all thanks to bonus automobile sales for 9 months have grown in comparison with similar period of last year more than by quarter (26,8%).
Following the results of this year sales of cars in Germany should reach 3,6 million cars. Next year decrease in sales by 800 000 cars is expected and it will be a huge problem for auto dealers. It is supposed that 6500 auto dealers all over the country can close that put at threat workplaces of 90 000 people. German government should urgently think out how to liquidate consequences of blow out soap bubble which it winded.
France prolonged similar program till 2011. However, French program is not as generous as German one, according to official figures "only" 330 000 people resorted to its help.
At one time with German market similar American program Cash for clunkers also terminates. There money allocated for support of auto sales (3 milliards dollars) came to an end even faster.
Auto dealers suddenly acted for termination of the program, though the drivers motorists demand banquet continue. According to the American scheme money goes not to the buyer but to the seller who then makes certain discount to the buyer. So, many dealers made discounts in advance but received no money from the government.
Now the largest automobile markets of the West will again undergo recession. Programs of subsidizing of car sector worked as a bait - it was good only for short time, further car market will enter new recession period.
From editorial board: We, of course, are most of all interested in situation in the Russian market where no bonuses and compensatory payments are provided - the state, to tell you the truth, generously financed oligarchs at the very beginning of crisis, money reached neither consumer, nor manufacture. Perhaps, they caused revival only in shipbuilding (not the Russian one) - several very expensive yachts were ordered.
Let's say, Nizhnetagilsky Metallurgical Industrial Complex paid to its main shareholder Cyprian offshore "Masterkroft Limited" dividends in the sum of 54,89 billion roubles. Roman Abramovich supervises this offshore. Abramovich's new yacht "Eklips" costs 340 million Euro - about 15 milliard roubles.
Or "Komsomolskaya Pravda" writes that solving situation in Pikalevo no one from officials showed interest, where $8,2 milliards paid by Oleg Deripaska to himself less than a year before are...
For us reduction of car market means falling of interest in oil which is used, as you know, for extraction of gasoline. Falling of interest in our gas first of all in Germany and France as the basic consumer of gas is industry. Demand for ferrous metallurgy production will also decrease.
However minister of economic development of the Russian Federation Elvira Nabiullina already declared that the Russian economy in the second half of the year will grow by 3,9-4,5%. The fact that prices for raw materials recently grow served as the reason of such optimism of the minister. When prices will start falling again, pessimism will appear again - in fact we have absolutely "coelenterate" management of economy, oil rises in price - growth, oil becomes cheaper - decrease. Actually, amoeba or infusorium can supervise it the same way.
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