Mon. Sep 16th, 2024

Brussels, 18 August 2022

The European Commission has found the modifications of existing German schemes to support companies in the context of Russia’s invasion of Ukraine to be in line with the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. The existing schemes are: (i) an umbrella scheme (i.e. a scheme administered by federal, regional and local authorities) approved by the Commission on 19 April 2022 (SA.102542); and (ii) an umbrella scheme under which the aid takes the form of guarantees on loans (‘guarantee scheme’) and subsidised loans (‘subsidised loan scheme’), that the Commission approved on 4 May 2022 (SA.102631).

Germany notified, among others, the following modifications of the existing schemes: (i) an increase of the maximum ceilings for limited amounts of aid, in line with the Temporary Crisis Framework as amended; (ii) for the guarantee and the subsidised loan schemes, a clarification on how the maximum loan amounts are calculated for newly established companies; and (iii) the introduction of the possibility, for the subsidised loan scheme, to increase the loan amount to cover liquidity needs stemming from financial collateral requests for trading activities on energy markets. The Commission found that the German schemes, as modified, remain necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework as amended on 20 July 2022. On this basis, the Commission approved the amendments under EU State aid rules. More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.104019 in the State aid register on the Commission’s competition website. 

Source – EU Commission

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