Political Reform Summit Fails to Bridge Divide as German Workers Face Weeks of Uncertainty

From stalled Alstom sale to Hervis closures and UniCredit's Commerzbank stake, German companies face deadlock, restructuring pain, and valuation disputes.

Tensions are rising across Germany's corporate landscape as workers, investors, and boardrooms grapple with stalled decisions, restructuring pain, and deepening political rifts. At a reform summit in the Chancellery on June 11, 2026, employers and unions clashed over the root causes of economic strain, with no agreement reached on pension or tax policy. Employers pointed to high labor costs and red tape, while unions blamed soaring energy prices and insufficient investment.

This gridlock mirrors the deadlock at the Alstom plant in Kassel, where roughly 930 employees have been waiting six weeks for clarity on a possible sale. At a works meeting in mid-June, management offered no new information, fueling open anger among staff. The plant is operating in the red and missing production targets. The works council is pushing for a decision that favors locomotive manufacturing, but the uncertainty over a potential transfer of operations is crushing morale.

Restructuring elsewhere is already underway. Austrian sporting goods retailer Hervis is closing 17 of its 93 stores, affecting about 100 jobs. Locations in Vienna, Salzburg, Upper Austria, Styria, and Tyrol will shut down. New owner Quantum Investment Holding is driving the reorganization, and a social plan—a structured severance framework—has been agreed for affected employees.

In the financial sector, a committee reviewing the exchange ratio at BUWOG AG has recommended raising the cash compensation from €29.05 per share to between €33.86 and €36.30, depending on the scenario. The experts argued that the stock price alone is not a reliable valuation benchmark—what matters are the synergies achieved. That contrasts with a ruling by the Munich I Regional Court in mid-February 2026, which confirmed €40 per share as fair for EQS Group AG, citing sufficient liquidity in the stock as a solid basis for valuation.

A high-stakes bidding war for Volkswagen’s marine engine maker Everllence is set to conclude by July 20, 2026. The company is valued at around €8.5 billion, and VW plans to sell 51% of its stake. Meanwhile, the conflict between UniCredit and Commerzbank is escalating. UniCredit now holds a direct and indirect stake of about 38%, with derivatives potentially pushing that figure to 54%. Commerzbank’s works council has filed a legal complaint citing suspected market manipulation, and financial watchdog BaFin is investigating. A full takeover is not expected before the end of the year.