Categories: Politics

‘Tata Steel must find billions of euros in the capital market, not from the government’ Related articles

“We need to get rid of the reflex that the government finances the green transition in Europe,” says BNR Member of Parliament Nilüfer Gündoğan. It is a clear response to Tata Steel CEO Hans van den Berg’s request for €1 billion in government support. Without the money, it would be difficult to achieve green steel production, he says.

Nilüfer Gündoğan thinks the subsidy is the last option for companies like Tata Steel. (BNR extension)

‘The word subsidy alone: ​​it pisses me off.’

Nilüfer Gündoğan, Member of Parliament

According to the deputy, the steel company must first seek financing from shareholders and the capital market, not the government. ‘In the Netherlands we benefit from the fact that the government helps companies in every way. While in America it is much more normal for the financial market to come into play. Why don’t they take it from there? ‘The word subsidy alone: ​​it pisses me off.’

Economical and green

Gündoğan thinks that the financial market is much stricter when it comes to green investments. “Investors have to believe in a good plan, so the requirements are much stricter,” he says. Investments from the capital market are also often subject to a profitability requirement. ‘Find investors who believe in your good plans.’

Furthermore, the deputy thinks that an amount of 1 billion euros could be much better spent on other things by the government: “With that you can pay for a lot of treatment and education.” With his stance, however, Gündoğan does not want to insinuate that the government should look away completely from companies like Tata Steel: ‘You have to make it fiscally attractive to go green. The grant should be used as a last resort, but let the capital market do its part first.’

Author: Niels Kooloos
Source: BNR

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