Staying afloat
June 6, 2009
"I can't understand at all why some in the Social Democratic Party want to burden German taxpayers with a risk instead of tackling the causes," the chancellor told Bild am Sonntag, referring to her coalition partners in the government who are in favor of getting the state involved.
Merkel said the owners and creditors needed to explain why it is that some parts of the company, such as travel operator Thomas Cook, are still financially sound.
"There are questions that need to be answered before government help is even considered," she said.
Merkel, who heads the conservative Christian Democrats, has recommended that the owner of the Karstadt chain of stores seek a deal with rival Kaufhof.
Asking for aid
Arcandor announced on Friday that it had asked Berlin for a government-backed loan of 437 million euros ($620 million) in an attempt to keep the company on its feet.
A previous application from Arcandor for government loan guarantees totaling 650 million euros from a fund meant to help companies hit by the global economic crisis has run into resistance among German government and EU officials.
Essen-based Arcandor says it's now seeking a special credit that would keep it afloat for six months. The money would be issued by the state-owned KfW development bank.
Chief executive Karl-Gerhard Eick said Friday the route had been recommended by key ministers.
mrm/AP/dpa
Editor: Nancy Isenson