The largest German corporations represented on the DAX stock exchange have received billions of dollars in state subsidies in recent years, writes the Nordbayerischer Kurier newspaper on July 29.
In 2023 alone, the 40 companies listed on the Dax exchange received at least 10.7 billion euros, almost double the 6 billion euros of the previous year, according to an analysis by the Flossbach von Storch Research Institute, a research and development center that manages more than 70 billion euros of client money.
Thus, although subsidies amounted to around two billion euros per year until 2018, their amount has increased considerably in the following years. In total, from 2016 to 2023, around 35 billion euros of public funds were allocated to the largest companies.
“The extent to which profitable companies receive public money has increased dramatically in recent years.”writes analyst Philipp Immenkoetter. It is difficult to estimate the total amount precisely because companies have room for manoeuvre in what they call subsidies in annual reports, he said.
However, the figures, according to the expert, are staggering. At the same time, the German federal government is simultaneously struggling to achieve budget savings. The analyst wonders “If there is an economic need to support or promote Dax’s concerns on such a scale at the expense of taxpayers.”
It should be noted that, according to the study, the net profit of companies represented on the Dax exchange will amount to 117 billion euros in 2023. Since 2016, Germany’s largest energy company, Eon, has received the largest amount of subsidies – more than 9.3 billion euros.
In addition, Eon has received several government investment grants. In second place is Volkswagen with 6.4 billion euros. The carmaker received tax incentives and funding for research in the field of digital and transmission technologies. BMW came in third with 2.3 billion euros, including grants for the construction of facilities.
Source: Rossa Primavera
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