German court ruling could cost Intel billions of euros in subsidies – state minister

BERLIN (Reuters) – The negative court ruling on German finances last week could cost Intel (NASDAQ:) billions of euros in subsidies for planned chip-making plants in the state of Saxony-Anhalt, the state economy minister was quoted as saying by magazine WirtschaftsWoche.

Berlin had agreed subsidies worth nearly 10 billion euros with the U.S. chipmaker, a person familiar with the matter had told Reuters when Intel announced its plans.

“When Germany cannot afford such future projects like Intel anymore, then the economic damage will be enormous and the image damage gigantic,” Sven Schulze, economy minister of Saxony-Anhalt was quoted as saying.