Billion-Euro Deal on the Brink of Collapse?

Billion-Euro Deal on the Brink of Collapse?

Negotiations on the billion-dollar compensation for the exit from the brown coal mining in the Lausitz are on the verge of collapse. “I increasingly have the feeling that EPH is deliberately delaying or torpedoing the contract’s conclusion” said Economics State Secretary Michael Kellner (Greens) to the “Redaktionsnetzwerk Deutschland” (Saturday editions) on the demands of LEAG’s parent company EPH. “Who wants to reach an agreement does not negotiate like this.”

According to Kellner, his concern is growing that the deal may ultimately fail. For the region, this would be devastating in his opinion. “Both the employees and the Lausitz are dependent on the compensation funds flowing in” said the Green politician.

The German government and LEAG had reached a fundamental agreement with the European Commission in June 2024 on a compensation for the shutdown of the brown coal power plants in the Beihilfeverfahren. A staged payment procedure was agreed upon, with 1.2 billion euros to be paid out in any case, covering fixed costs for social agreements and changes to the mining plan. A remaining sum of up to 550 million euros would only be disbursed if the operation of the power plants were economically viable beyond the legally prescribed shutdown date. The details were to be clarified in the contract negotiations, which have now stalled.

“‘A better deal than this one will not be achieved with the European Commission,’ said Kellner. EPH owner Daniel Kretinsky must take responsibility and clear the way for the future of the Lausitz, he demanded. ‘If it is an attempt to make as much money as possible with coal and then disappear without taking responsibility for social costs and mining aftermath costs, then we will prevent it,’ Kellner added.