High-level representatives of the business sector, lenders and the trade unions were invited by Chancellor Angela Merkel to discuss the serious economic situation. The focus was on how to prevent the credit crunch that experts have forecast.
With a new fund set up by several leading banks and savings banks, lenders intend to give medium-sized businesses access to the loans they so desperately need. In return, the German government will consider relieving the banks of some of the risks involved in extending these loans, Federal Finance Minister Wolfgang Schäuble announced.
There are no plans for the government to be involved in the fund, the Finance Minister stated clearly.
Federal Economics Minister Rainer Brüderle spoke of a remarkable voluntary commitment on the part of lenders, in an effort to avert a credit crunch. The plans include a move to offer medium-sized businesses a special financing instrument when they do not have the capital they require. Models of this sort can enable healthy businesses to meet strict international requirements for taking out loans, even when they have little "real” capital of their own.
Difficult access to credit, not a credit crunch
The lack of liquidity on the part of medium-sized businesses is an obstacle to investment at present. This is jeopardising economic recovery, and thus jobs.
Both ministers declared after the talks that the situation on the labour market in Germany is rosier than expected one year ago, thanks mainly to the instrument of short-time working. The situation can, however, be expected to worsen over the next few months. This makes it all the more important not to crunch the first tentative shoots of recovery with obstacles such as a lack of access to credit.
There can be no question of an across-the-board credit crunch, however, underscored both Wolfgang Schäuble and Rainer Brüderle.
Consensus for recovery
"The crisis is not yet over, it will be with us for some time yet,” the Chancellor declared at the start of the meeting. At the same time she repeated her conviction that Germany must come out of the crisis stronger than it was before.
The credit branch has the most important role to play in this at present, and lenders are too timid currently. "Banks were given assistance and now they must accept their responsibility,” the Vice-Chancellor Guido Westerwelle warned bankers.
Growth only possible with solvent businesses
Dieter Hundt, President of the German Employers’ Federation, underlined the fact that investments needed to create and secure jobs are only possible if enough credit is made available, at acceptable conditions and without unnecessary red tape. Many companies have still to face the worst he warned. Cooperation of the two sides of industry with politicians has proved to work admirably. Now it is up to the banks to do their bit.
The President of the Confederation of German Trade Unions (DGB), Michael Sommer, too found that Germany has done a good job. That is why labour market trends are some of the most positive in the world, in spite of the fact that the German economy was one of the worst hit.
Rainer Brüderle praised the concerted efforts of businesses, employees and politicians as important and positive for Germany as a business location.
