EC approves €20-bn German scheme to back firms following Ukraine war

“…Germany will support companies across all sectors affected by the current crisis and the related sanctions. This is an important step to mitigate the economic impact of [Russian President Vladimir] Putin's war against Ukraine. We continue to stand with Ukrainians. At the same time, we continue working closely with member states to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the single market,” Margrethe Vestager, EC executive vice president in charge of competition policy, said.

The measure will be open to companies of all sizes and active in all sectors, with the exception of the financial one, which are affected by the current geopolitical crisis and the related sanctions.

Under the scheme, the eligible beneficiaries will be entitled to receive limited amounts of aid in any of the following forms: direct grants; tax or payment advantages; repayable advances; guarantees; loans; equity; and hybrid financing.

The Commission found that the German scheme is in line with the conditions set out in the Temporary Crisis Framework. It concluded that the German scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state.

On March 23, 2022, the Commission adopted the State aid Temporary Crisis Framework to enable member states to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's invasion of Ukraine.

Fibre2Fashion News Desk (DS)