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German Minister: Germany must protect its economic structure

According to one of the statements released of Justice Minister Christine Lambrecht, she said that during the coronavirus crisis which is going on all over the word, Germany must protect its economic structure. And Germany must prevent the break-up or sell-off of key companies.

Christine Lambrecht said that it is quite domineering that they protect the economic assembly of the country during the catastrophe.  And also prevent the sale of important companies. She further added that the state is prepared to take stakes in companies to this end. If this should become necessary, the state is prepared ever partially of completely. Blue-chip DAX index .GDAXI of Germany which includes the 30 largest listed corporations of the country has jumped about a quarter over the past month. This change is occurred due to the coronavirus outbreak. This crisis has brought many economies to a near end. Peter Altmaier, Economy Minister of Germany said in one of the interviews last week that limited and temporary state support is needed to fend off unnecessary and unwanted foreign takeovers. In addition, state-funded participations as well as takeovers may be used in order to defend.

M&A lawyers and Investment bankers will try to use opportunity of buying companies in low cost. Some of the lawyers and bankers are state-backed. Therefore, on investment screening Spain has now constricted its new rules. Likewise Germany also is in the process of doing so as soon as possible following Spain. Jan Bonhage, a Hengeler Mueller lawyer specializing in public economic law said in one of the interviews taken that he purpose of this step is not just so much focus on past crises but also on what strategic considerations as well as actions are being applied and made especially in China. And along with China, in the current context possibly also in the U.S this considerations should be made.

According to the media reports, Washington had tried to get access to a potential and necessary coronavirus vaccine in order to get relieved from this ongoing pandemic. This coronavirus vaccine is made by Germany’s CureVac and stimulated a political reaction in Germany. They also worked with interior minister Horst Seehofer and economy minister Peter Altmaier pronouncing backing for keeping CureVac German.

CureVac later completely denied that it had received United States’ offers for the assets or the company. Further, Germany set their plans in November to create a government committee to step in as soon as possible in order to protect companies against foreign takeovers. This plans by Germany is a good sign of concern about China and other countries which might be ready to buy its technology. The well planned Economic Stabilization Fund Act will further give the control to the interministerial committee. Thus the committee will make the decision on the state taking stakes in the companies. According to the Bonhage, this includes various important sectors such as food sectors, traffic, transport, health, finance, telecommunications, information technology, water, energy and other, so there is not much else left to do.