In a bid to protect consumers and investors. The Berlin-based consumer investor protection organization Verbraucherzentrale für Kapitalanleger (VzfK) has issued a press release here warning Deutsche Bank AG of the high risks of investments in “dubious renewable energy companies” and their projects after a string of spectacular insolvencies.
What follows is the VzfK press release, translated to English:
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.“
In the letter itself, Weimann writes:
Should the renewable energy support continue to develop further and go on unbraked, burdens to the economy to the tune of over one trillion euros are to be feared.”
11 responses to “German Consumer Agency Issues Open Letter, Warns Deutsche Bank Of “Dubious Renewable Energy…Burdens Of Over 1 Trillion Euros Feared””
Well done, Pierre (& EIKE)!
This needs massive distribution, with the title: “German electricity consumers underwrite massive job-destruction campaign.”
This is big — bigger than the bailouts of Portugal, Greece, Ireland, etc. for it represents only Germany and it will continue to grow unless legislated a swift form of euthanasia.
The German EEG was a deformed baby from the start, kept alive only through the artificial heart and lungs of the state subsidies. Yet the average consumer in Europe is completely unaware. Green & red politicians from London to Lisbon, Helsinki to Heraklion praise Germany’s success in achieving > 20% of its electrical energy from “sustainable” sources!
The sober truth: sustainability needs an economic component – otherwise it will join the dustbin of history’s countless failed utopian schemes.
The Cleantech House of Cards will blow down — the sooner, the better. An unfortunate mess for the honest business people. Industry and politics have tried to hide fundamental problems for too long. It is time to “come clean” with the electorate and dismantle this absurd feeding structure. The dice shall fall where they may. But politicians with “Cleantech” businesses on the side should prepare for a backlash. Conflict of interest, anyone?
My earnest hope is that would-be imitators will learn from Germany’s errors.
Kurt in Switzerland
But, but …
… all this free energy must be powering the German economy to the highs that other countries can only dream of. Free solar power, free wind power will transform the German economy, wont it?
As all the green campaigners know, as these renewables come online then life will be so nice, and so cheap! It’s just the nasty capitalists trying to ruin everything.
It couldn’t be real-life physics catching-up with them, could it?
What have they got so wrong?
Small fries for Deutsche Bank managers. They probably take Valium by the boatload just to be able to sleep – they sit on 70 trillion USD of derivatives. Normally, these are hedges neutralizing each other’s risks. But if the collateral chain breaks – through a Lehman event for instance – it all goes haywire, and Germany is toast.
I was looking for bank ratings to diversify; I’m currently at BNP Paribas which are nearly as leveraged as Deutsche. I found this.
Remember that the EU commission has already declared the EU wide bail-in regime – depositors now count as creditors to the Bank and will pay if the bank goes bankrupt (not the taxpayer this time – the EU states are too broke to afford another 2008/2009 style recapitalization of the banks).
[…] German Consumer Agency Issues Open Letter, Warns Deutsche Bank Of […]
Now that is an appropriate name for a turbine company. Wart … blemish on the skin of a body.
Windwärts / windwærts just means “towards” the wind.
Try not to ignore the Umlaut thingie (dots above the vowel).
Kurt in Switzerland
O/T Collusion of statist academia and leftist extremists: Berlin university TU in April provided free rooms for a congress initiated by the “Interventionalist Left”, an org under surveillance by the Verfassungsschutz, classified as leftist extremist.
German wikipedia page about the org, with photo of poster “Make Capitalism History”. (a demand violating the German Grundgesetz (our Ersatz constitution))
Revolutionary Danish windmill design: The Hydra.
I would think very likely to be subject to turbulence between blades. Even side on there would be interaction dropping the efficiency and reducing power output.
Also wouldn’t like the building cost, nor the “fun” of transporting to site.
Again, thank you Pierre, for letting the rest of us know what’s really going on in Germany (and thanks for the excellent translations). This should certainly be a time when someone in authority takes a deep breath and says that they are on the wrong road, and facing in the wrong direction as well. NTZ is an island of sanity.
To Kurt in Switzerland: Your first comment on 1st May says everything that the politicians should absorb – many thanks.
Kurt in Switzerland: Error correction – I meant your comment on 30th April, at 20:05.