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- Title
Sind Subventionen sinnvoll?
- Authors
Sturm, Roland
- Abstract
The article "Are subsidies useful?" by Roland Sturm discusses the question of whether subsidies are a sensible measure. Germany is part of the European internal market, in which state aid can distort competition and affect trade between member states. Subsidies are widespread in practice, although the price mechanism is considered efficient in a market economy. There are various instruments of subsidy policy that are used on the supply and demand side. However, the decision to grant subsidies can make one vulnerable to blackmail and lead to a bidding competition. The article also mentions the example of the company Intel, which has applied for a subsidy of almost ten billion euros for the construction of a chip factory in Saxony-Anhalt. The question of the usefulness of subsidies is controversially discussed, as they can be seen both as compensation for location disadvantages and as strategic support. The article discusses the question of whether subsidies are sensible and what problems are associated with them. It is pointed out that in recent decades, Germany could have supported the security of gas supply by expanding LNG terminals, but private companies have had little incentive to do so due to high costs and lack of government support. It is emphasized that clearer EU guidelines are necessary to define strategically important areas and prevent subsidies outside of these areas. It also points out the difficulties in capturing subsidies and the different approaches of countries to subsidy policy. The current government has announced in the first subsidy report of the traffic light coalition that it will promote the priorities of subsidies. The majority of the increase in subsidies is accounted for by the commercial economy, particularly the purchase of electric vehicles and the decarbonization of industry. Subsidies are also increasing in the housing and transport sectors, especially for energy efficiency measures and the expansion of refueling and charging infrastructure. In total, the federal government has provided 128 financial aids, with the 20 largest measures accounting for about 77 percent of the total volume. The control of subsidies lies mainly with the European Union, and transparency and evaluation of support measures can be improved.
- Subjects
SAXONY-Anhalt (Germany); GERMANY; CAPITALISM; GOVERNMENT aid; ELECTRIC vehicle industry; INFRASTRUCTURE (Economics); SUPPLY &; demand; EUROPEAN Union; INTEL Corp.
- Publication
GWP: Gesellschaft Wirtschaft Politik, 2024, Vol 73, Issue 2, p149
- ISSN
1619-6910
- Publication type
Article
- DOI
10.3224/gwp.v73i2.04