Axel Springer is no longer investing money in the PIN Group for the time being

 
Due to a decision by the German Bundestag regarding the minimum wage for the postal sector, the publishing house Axel Springer has decided not to provide any more funds for the PIN Group. The publishing house has invested around 620 million euros in the private postal service provider to date (see: ) and, together with other shareholders, has created more than 9,000 jobs, according to a statement on Friday. In the course of the liberalization of the postal market, the aim was to establish a competitor to Deutsche Post and the company had been extremely successful until the minimum wage debate began, reports Axel Springer. However, the Bundestag's decision has now called the company's competitiveness into question. All the more so as Deutsche Post is permanently exempt from the 19 percent VAT and accident insurance fees (3 percent) and would therefore have a blatant advantage. This would not only massively hinder competition, but make it practically impossible. The criticism of the EU Commissioner responsible for competition, the President of the European Central Bank, the Ifo Institute and the President of the German Cartel Office confirms this assessment, according to the publisher.
According to its own statements, Axel Springer would be prepared to relinquish its majority stake in the PIN Group if minority shareholders or new investors provide sufficient funds to enable an economic perspective. In addition, the statutory minimum wage should not exceed 7.50 euros and Deutsche Post would have to be obliged to pay full VAT and accident insurance from January 1, 2008, so that the competition-distorting cost advantage of up to 22 percent would be eliminated.