“Es should be a bang” according to German Finance minister Olaf Scholz (SPD), as he announced his support program for companies and German citizens. Tax decreases, support for businesses and extra cash for families. It supposed to be a kickstart for the German economy. But on the contrary, it put a halt to all investments, industrial or private untill they know how much they will get. No new product lanes for the auto industry, no new IT systems or other logistics upgrades. Family fathers will wait buying a new fridge or a new VW for the daughter’s 18 birthday.

A similar impact had the announcement of 700 billions for the southern countries. There should be a strict control on how the money is spend. Investments in steel and Hydrogen have long pre- phase and will have no direct impact on the economy.

Companies in Spain, Italy and Eastern companies have halted their investments untill they know how big their piece of the cake is.

Russian petrol industries and steel giants have increased their interest in Southern companies to get their slippery hands on the EU money. Nobody will know where the cash will flow to and in which pockets it will end.

But worse, organised crime on the Balkan is already preparing infrastructure to get their dirty hands into the Brussels tills.

No wonder, the Dutch Premier Rutte wants strict controls who gets the subsidies and what ot should be used for.

The EU is in a hurry because the group of “stingy” countries increases. And maybe right so.

But untill than, the support announcement had a reverse effect on the local economies.

THEO R.