Schleswig-Holstein's 300 million euro guarantee: what now?

Schleswig-Holstein's 300 million euro guarantee: what now?

Heide, Deutschland - A dramatic financial game unfolds in Schleswig-Holstein! The state government faces the challenge of defending a guarantee of 300 million euros for the battery manufacturer Northvolt. Dirk Schrödter, the head of the State Chancellery, emphasizes that the convertible bond is a common financing instrument and that the risks have been intensively checked beforehand. But the time is urging: The federal government has not yet asked Schleswig-Holstein to pay, but finance minister Silke Schneider warns that the payment could be due at the latest in early March 2025.

The situation is heading! In order to create the “household requirements” for the payment, the country would have to accept another 300 million euros in debt. This would not only increase debt burden, but also raise interest expenses. Minister Schrödter tries to appease the situation by emphasizing that the funds are not lost, but invested in the construction of the factory in Heide. But the opposition is skeptical: Beate Raudies from the SPD expresses dissatisfaction with the answers of the state government and thinks about a view of the file.

The construction of the battery factory in danger?

Schleswig-Holstein guarantees half of the convertible bond, which is a total of 600 million euros. This sum was paid out to Northvolt as early as December 2023 and January 2024. Schrödter and Gaby Schäfer, President of the State Audit Office, assure that the money is used exclusively for the construction of the battery factory in Heide. A large part of the funds have already been used for machine accounts. But the question remains: did the money actually flow into construction? State Secretary Julia Carstens explains that the funds are in a blocking account and that an exam is possible. However, the opposition remains suspicious and sees a risky financial instrument in the convertible bond.