FRANKFURT (Dow Jones) – According to information from the news magazine Spiegel, the traffic light coalition has cleared up a crucial point of contention in the law on the electricity and gas price brake. This involves the question of whether companies are allowed to pay bonuses to their executives, managing directors or supervisory boards and to distribute dividends to shareholders. According to Spiegel, the Greens in particular prevailed here.
If companies receive between 25 and 50 million euros in government support from the subsidized electricity and gas prices, they are not allowed to increase the bonuses to their management next year. According to Spiegel, the distribution of dividends will remain unaffected. From an aid payment of 50 million euros, neither bonuses nor dividends may be paid out. This leaves the agreement negotiated by the three top householders from the SPD, Greens and FDP.
The Federal Ministry of Economics and Technology’s draft law on gas and electricity price brakes, which was approved by the Federal Cabinet, can now be passed in the Bundestag. Time is running out. Because it has to be voted on this week so that the Federal Council finally waves it through on Friday. The regulations are to come into force from March 1st, but will be calculated and paid out retrospectively from January 1st.
The FDP had again questioned the compromise on bonuses and dividends originally negotiated by all three householders. Intensive negotiations then began, also over the weekend, which could only be successfully concluded on Monday afternoon.
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(END) Dow Jones Newswires
December 12, 2022 12:30 PM ET (17:30 GMT)