I heard that 1/3 of the German GDP goes to company subsidies?

Question

I heard that 1/3 of the German GDP goes to company subsidies. is this true?

Like to nokia, and the such?

Answer 1

Be more specific and provide links where this information comes from .The number is much too high and Nokia is neither German nor from Norway its from Finland.

Edit: Do you have the link for that info on BBC so I can watch it?

But I would be carefull as English media often spread false information  to cause trouble in EU wouldn't be the first attempt.

2nd EDIT: Maybe it is the British answer to Germany oposing the entry to NATO of Georgia and Ukraine  ;-)

Thanks for the thumb down btw jerry i did thumb you up

Answer 2

There is some truth in that, but I doubt the definition of "subsidies" the EU has taken up. There also was no real scandal about Nokia; they payed back the subsidies they received as taxes. I think the EU doesn't really understand the problems Germany has to face:

- Privatasiation of formerly state-run companies which didn't prove effective, but still have a lot of state employees who have a right to relatively high pensions

- The Kosovo war and the German involvement in Afghanistan, which cost millions, and will continue to cost

- The aftermath of German reunification. East Germany is not yet on an econimical level the West would have had, and never will be. Rather it seems that the West suffers an economic downfall

- Fast changes in government, and a lack of support by the populace. Which I understand, as the first solution to governmental financial problems seems to be lowering social standards and reducing taxes for the rich

Germany is one of the major payers in the EU, but a lot of that money goes to Brussels, and is then distributed to other EU member states, like Poland, Romania, and such, who have by their joining the EU gained a right to subsidies, mostly for agriculture. And then there's long-term treaties Germany has within the NATO, or in development for Africa. Maybe all that, taken together, may amount up to a third of the GDP; but in no way can it be only subsidies to companies located in Germany.

Answer 3

I'm from Germany, I am a bit interested in politics and I just heard about this "fact" for the first time.

I guarantee, if this was true, there would be a public outrage, the media and the parties of the opposition would be talking about nothing else and it would be the only thing in public discussion.

The states budget is no secret story, and things like keeping such facts secret wouldn't be possible today anyhow.

Your information is wrong.

Answer 4

Nokia comes from Norway btw...I don,t think it's true, it's just too big. **** yeah, it's from Finland, i got mixed up sorry.

Answer 5

Smile  even Germany does not spend that much money on subsidies; but like all western countries they spend a lot

- agriculture

- Coal industry

Nokia is from Finland and they received about 45million Euros from the German government. This (unfortunately) happens all over the world - also in the US. Big companies enjoy our tax dollars.

Worse in Germany there are many state run companies - for instance in the finance industry and the German taxpayer poured billions in this institutions. ( Just like in the US with the savings and loan crisis.)