During the coronavirus crisis, State aid is a way for businesses to obtain liquidity. State aid can be granted by all national public sector bodies, including local authorities. There is no direct aid available from the EU Commission.
Individual grants of State aid and State aid programmes must be notified and approved by the EU Commission as a matter of principle. At the present time, Germany has already applied for and received approval for four programmes . The approvals are based on the Temporary Framework adopted by the EU Commission on 19 March 2020.
This article provides a brief overview of the most important options available. These include newly created programmes as well as existing options for businesses which are experiencing difficulties.
Temporary Framework of the EU Commission
- Who can receive the aid?
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary?
Which programmes already exist in Germany?
Economic stabilisation fund (ESF) for Germany
- Who can receive the aid?
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary? The establishment of the fund has not yet been qualified as an aid scheme. The government may introduce programmes (or framework regulations) which will set out the requirements of support provided under the fund and/or grant aid in individual cases. Both programmes/framework regulations and individual aid require approval by the EU Commission. No State aid may be granted prior to the Commission's approval. It is to be expected that e.g. any takeover of equity will require an individual approval by the Commission
Special programmes by the German Development Bank (KfW)
- Who can receive the aid?
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary?
Federal scheme State Guarantees 2020
- Who can receive the aid? Undertakings which are not in difficulties* (not UID) or which only got into difficulties after 31 December 2019 owing to the coronavirus crisis can apply.
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary?
Further programmes
- Who can receive the aid
- What does the aid consist of?
- From whom can companies receive the aid?
Which further State aid options are possible beyond the existing subsidy programmes?
Rescue and restructuring aid
- Who can receive the aid?
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary?
State aid to rectify damage caused by exceptional occurrences
- Who can receive the aid?
- What does the aid consist of?
- From whom can companies receive the aid?
- Are notifications to the EU Commission necessary?
Measures which do not constitute State aid in the sense of EU law.
- Measures by state shareholders
- Purely local matters
- Other measures which do not need to be notified
Please feel free to contact one of our experts if you are interested or have any questions: Dr Michael Bauer, Helmer Krane LL.B., Daphne Brunkhorst, LL.B., Dr Hermann Müller, Florian Kuhlmann.
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