INTERVIEW-SPD's millionaire assails banks for credit crunch

Tue Aug 4, 2009 2:55am EDT

* Young multi-millionaire blames banks for credit crunch

* Entrepreneur to be small business voice in government



By Erik Kirschbaum

BERLIN, Aug 4 (Reuters) - A 37-year-old multi-millionaire picked by German chancellor candidate Frank-Walter Steinmeier to coordinate economic policies said in an interview that small businesses are being crippled by the lingering credit crunch.

Harald Christ, a former banker from a family of car industry assembly line workers, told Reuters banks' reluctance to lend to small- and medium-sized businesses that are the backbone of German industry was alarming and endangering economic recovery.

A surprise choice on Steinmeier's team of shadow ministers, the self-made millionaire also said he would set up a new office in the chancellery to run "long-neglected" small business policy if the Social Democrats win power in the Sept. 27 election.

"A lot of small and medium-sized business are really feeling the effects of the credit crunch," he said. "That's where 90 percent of the jobs are in Germany and a large share of taxes are. The credit crunch is a major issue for a lot of companies."

Christ, whose SPD trails Chancellor Angela Merkel's conservatives by about 12 points in opinion polls, said the credit crunch was imperiling economic recovery.

"That's why I appeal to banks to start living up to their responsibilities. They shouldn't forget it was the taxpayers who jumped in to stabilise the banking system. The banks in return have a responsibility to help stabilise the economy.

"The 'lifeblood' of the economy can't be compromised," said Christ, who added he thought the European Central Bank "has done a good job" of supporting the economy and small business.

Christ, whose father and grandfather spent decades working on assembly lines at Opel factories, held a variety of senior positions at Deutsche Bank, WestLB and Weberbank. He made his fortune as CEO and owner of Christ Capital AG in Berlin.

Aligned to the centre-left SPD despite his enormous wealth, the entrepreneur's inclusion on Steinmeier's team was a big surprise.

The SPD hopes Christ can attract managers and workers at small businesses who usually vote for other parties.

"My job is to give small and medium sized business a voice," said Christ, who drives a high mileage two-seat compact car. "It's a new office in the chancellery. I hope to bring in my expertise. We want to show we're going in new directions."

Christ is the SPD antidote to the conservatives' popular Economy Minister Karl-Theodor zu Guttenberg, also aged 37.

"He's a likeable guy and I don't have anything against him," said Christ. "But he's not doing enough for small business. We're in the middle of a crisis. He should be focusing more on the woes of small business than being in the media spotlight."

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