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German Power Giant RWE Risks Becoming “Largest Bankruptcy In German Business History”

July 16, 2016

By Paul Homewood  

 

h/t Stewgreen

 

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http://notrickszone.com/2016/07/15/german-power-giant-risks-becoming-largest-bankruptcy-in-german-business-history/#sthash.QJIGKV6A.80v2s497.dpbs

 

From NoTricksZone:

 

Germany’s “Energiewende” (transition to renewable energies) is threatening to cause widespread economic havoc.

Not only have almost every major solar manufacturing company in Germany gone bankrupt, leaving economic blight in its wake, now traditional power giants, which hire tens of thousands of skilled workers, are threatened by bankruptcy.

Today German flagship daily Frankfurter Allgemeine Zeitung (FAZ) reports here that the country’s largest power company, RWE, now faces bankruptcy in the wake of the post Fukushima Energiewende, where the German government forced the immediate shutdown of nuclear power plants in a panicked reaction to the Japanese disaster.

For RWE this meant an immediate shutdown of some 25% of its assets. The FAZ writes that since Fukushima, RWE has lost a whopping 70% of its value.

The situation is hardly better at competitor E On, whose share price has fallen 58% since Fukushima.

The title of the FAZ article is “The last days of RWE” and writes that “Germany’s largest power producer has become a bankruptcy candidate“.

Currently RWE has “45 billion euros in long-term liabilities, 8 times its equity“, the FAZ reports.

 

Read the full story here.

 

As Pierre points out:

But in the end RWE is a power company that is to big to fail, and so the FAZ writes that if push comes to shove, the state will have to intervene and bail out the company. Otherwise there would be “chaos on the power market“. Once again the lowly consumers would be asked to reach ever deeper into their pockets.

That’s how the socialist system works in Europe: Socialize the pain, privatize the profits.

 

Unfortunately, it shows what happens when politicians attempt to interfere with free markets.

3 Comments leave one →
  1. A C Osborn permalink
    July 16, 2016 11:46 am

    This is what it is really all about
    https://wattsupwiththat.com/2016/07/16/bank-of-england-governor-mark-carney-climate-is-a-7-trillion-opportunity/
    http://www.thegwpf.com/project-climate-fear-bank-of-england-alarmist-in-chief-raises-climate-alarm-in-canada/

    They don’t care what casualties they cause along the way, be it
    prolonged poverty in Africa
    Winter deaths
    Industries collapsing
    Taxpayers getting poorer

    The UN, and Bankers will still be doing very nicely thankyou.

  2. July 16, 2016 1:22 pm

    Germany has thoroughly screwed up their electrical system.

    Let this be an example of what *not* to do, in the future.

    These people thought they had it all figured out, and look what has happened: a total mess.

    California will probably be the first example of this kind of stupidity in the U.S.

    The solution to the Green’s problems (reducing CO2 emissions) are right in front of their eyes: modern, nuclear powerplants, but they refuse to acknowledge it as a solution, instead insisting on continuing to use already failed renewable technology.

    Save the birds, and your nations economies by replacing birdchopping windmills with nuclear generation. Wake up and smell the coffee, before your entire economy collapses.

  3. markl permalink
    July 16, 2016 3:28 pm

    This should not come as a surprise to anyone. The UN/IPCC has openly stated the goal of the AGW movement is to bring about the fall of Western Industry and Capitalism to make way for a new world wide era of Socialism and One World Government. Meanwhile the West continues to be the majority supporters of the very institution whose main goal is to destroy them.

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