Wednesday June 3, 08:47 AM
Workers at German retailer Arcandor press for aid
BERLIN (AFP) - Workers at troubled German retailer Arcandor (Xetra: 627500 - news) want to press Chancellor Angela Merkel for state aid, a press report said Wednesday, as a government-backed rescue of car maker Opel raises hopes in other sectors.
"We fulfill the criteria for aid," works council head Hellmut Patzelt told the Westdeutsche Allgemeine Zeitung newspaper, saying that he had asked for a meeting with Merkel.
He was also quoted as saying that the meeting request included Vice Chancellor Frank-Walter Steinmeier and Finance Minister Peer Steinbrueck, both social democrats who belong to a coalition government with Merkel's conservatives.
"More than 50,000 jobs are threatened," Patzelt said.
Arcandor, which has activities in the retail and tourism sectors, has asked the government for 650 million euros (930 million dollars) in loan guarantees and a direct credit of 200 million euros.
But conservative German politicians have pointed out that Arcandor's problems began before a global economic crisis slammed Germany in mid-2008.
Berlin has agreed to guarantee around three billion euros in loans for Opel, and to give the car maker an emergency bridge loan of 1.5 billion euros to keep it running until it is taken over by the Canadian auto parts group Magna.
Opel employs 25,000 workers in Germany and the deal was agreed to four months ahead of general elections.
Merkel has already distanced herself from Arcandor's demand however, saying the Opel rescue was "an exceptional case" and that she "did not see other cases of a similar nature."
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