How nice of Germany to do that. But where does Germany get the money to repay them?
It’s no Kunststück (slight of hand), folks. I could repay customers of insolvent companies all day long too as long as I had somebody else’s money to repay them with. Just milk the taxpayer again, in other words.
Germany will give financial assistance to customers hit by the insolvency of Thomas Cook because the tour operator’s insurance cover has proved insufficient, it said on Wednesday…
Insurer Zurich’s (ZURN.S) liability is capped at 110 million euros ($121 million) but it has already registered claims worth 250 million and experts estimate total claims will reach 300 million to 500 million euros, ARD said.
A legal opinion commissioned by Zurich concluded that state liability is possible because the German government inadequately implemented a 2015 EU directive meant to ensure customers get their money back in the case of the insolvency of a tour operator, the report said.
“Damages that are not compensated by other parties will be settled by the federal government.”