German Shipyards Face Myriad Troubles

European shipbuilding continues to struggle against the old problems of high labour costs and few orders. Now European Union industry ministers have voted to prolong the region’s subsidy regime until October of next year.

Despite protests from Germany, the UK and Sweden, the EU will not ratify the OECD accord on subsidies until all other members of the organisation have done so. The trio had sought to end subsidies by May at the latest, but the EU’s position is not now likely to be discussed again until June. The EU is set to end subsidies next October in line with the rest of the OECD. Although this is a disappointment to the hawks, the UK at least has signaled that it will not be taking unilateral action to end subsidies.

However, for the shipyards facing problems throughout the region, the subsidy debate is a bit of a sideline. For they are under pressure in terms of cash flow shortfalls.

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