Insolvency of KTM AG

Province signals willingness to help workers

(Bild: Krone KREATIV/Daniel Scharinger, Sebas Romero)

The province of Upper Austria has signaled its willingness to support the employees affected by the impending insolvency of KTM AG. However, liability is not legally possible, emphasized Governor and Finance Minister Tomas Stelzer (ÖVP).

"Of course, as politicians we want to help and support the location. We are doing everything we can to save the plant and the jobs," said Stelzer in a statement to APA. But: "However, EU state aid law and insolvency law currently de facto rule out liability." The state is "certainly on hand when it comes to helping the affected employees - together with the AMS and social partners".

Performance incentives and faster procedures
"It is important that things continue", Upper Austria is still a strong business location, even if the situation is difficult. "But we have the strength to get out of it and prevent a downward spiral," Stelzer is convinced. In view of the economic situation, he hopes that there will soon be a government capable of taking action and called for performance incentives and faster procedures to support the economy.

Victim of the "black-green wrecking ball"
His government partner, Governor Manfred Haimbuchner (FPÖ), sees KTM as a victim of the "black-green wrecking ball", "the anti-business environment of recent years is now bearing rotten fruit". He used the situation for an all-round attack on his political rivals. Federal Chancellor Karl Nehammer and his ÖVP had "run the location down" and now wanted to "enter into a coalition with an avowed Marxist". With their 2040 climate neutrality target, the black-green coalition had engaged in expensive "gold-plating".

Greens identify management errors
The Greens, on the other hand, have identified management errors: it had long been known that the emissions standards for motorcycles would become stricter and that continuing to produce the same old products would not be enough. "The fact that net debts have risen to 1.5 billion euros within two years and yet consistently high dividends have been paid out does not make for a lean company from today's perspective," says Green Party business spokesperson Dagmar Engl. Together with labor market spokesperson Ulrike Schwarz, she is calling for "massive participation by billionaire Pierer (Stefan, note) in the restructuring of KTM".