Article Tools

Verbund - Fight over capital increase further delayed

Published: August 26, 2010; 18:52 · (Vindobona)

The controversy over Verbund capital is likely to prolong. Infrastructure Minister Doris Bures will continue to insist on her initial position.

Verbund - Fight over capital increase further delayed / Picture: © Verbund AG

The government should equally support all its public enterprises, she argues. An individualized solution for Verbund, which is about to receive a capital injection of €510m ($647.3) by the government, was vehemently rejected.

Bures reiterated the call for supporting ÖBB. She argues "against a weakening of ÖBB equity, which is due to events of the last 17 years". Particularly in difficult economic times, it was necessary to support the ÖBB. There should not be political incentives at the expense of the railway company. The ÖBB would also be affected by declines in freight traffic, she said.

As for the Verbund, Bures does not see any need rush decisions. "I do not assume that Verbund is about to go bankrupt." After all, for a capital increase one has to conclude budget authorization bill that must go through the National Council. The next plenary is scheduled on September 22. Bures argues that there is enough time to find a common solution for all federal companies: "The faster we agree, the better it is."

With respect to Chancellor Werner Faymann in her approach in the bond issue said Bures, she too would not support to mix two things”which do not belong together." Faymann argued at a meeting of the Council of Ministers on Tuesday that it would be acceptable "to have discussions at the same time, but a tandem measure was not necessary.”

Fast News Search