A German government audit has raised serious concerns about the Ministry of Economics’ handling of a 600 million euro loan to the battery manufacturer Northvolt in 2023. According to a confidential report by the Federal Audit Office, the ministry, led by then-Minister Robert Habeck of the Green party, systematically underestimated the risks for the government when approving the loan.
The report, cited by the Bild newspaper, claims that the ministry did not adequately assess the risks of the loan and that a corresponding report by an auditing firm also failed to accurately identify the risks. The auditors criticized the ministry for not questioning the central assumptions of Northvolt’s success, instead acting on the principle of hope.
Furthermore, the report accuses the ministry of failing to document crucial decision-making steps, making it impossible to verify the actions and subject them to external control. This is particularly concerning for video conferences with other experts, which were not documented.
The audit’s findings are severe and the opposition is already using the report to attack Habeck and his ministry. Andreas Mattfeldt, a CDU politician, described the situation as “sprengstoff” – a ticking time bomb – and suggested that the ministry’s actions may have been intentional rather than simply reckless.