Feeds

Germans demand Nokia return funding

Nokia 'astonished'

The Power of One Infographic

Nokia has responded with astonishment to the attempt by the North Rhine-Westphalia Bank and local government to reclaim subsidies given to the mobile phone maker in 1999, claiming they invested more money and created more jobs than the subsidy demanded - even though they've now closed the factory.

Nokia reckons it received a total of €41.3m from the bank, compared to its own investment of more than €350m, and employed an average of 3,200 people at the site. Its commitment was to keep 2,860 in work for the money.

Nokia's figures only cover from 2001 to 2007, while the deal was made in 1999, so those first two years could drag the total down. Nokia also admits that a proportion of those employed weren’t working for Nokia directly, so there's some room for debate there too.

The mobile phone monolith does point out, rather snottily, that it paid just as much in tax as they received in subsidy, though what bearing that has on the agreement isn't clear.

It's also saying it's keen to discuss the issues with both the bank and local government, while making clear that it has no intention of returning the money. Right now all this is sabre-rattling - it remains to be seen who backs down first or if both parties have the nerve to take it to court. ®

The Essential Guide to IT Transformation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.