The European Commission has approved the amendments to existing German umbrella schemes, including their prolongation and an up to €45 billion overall budget increase, to support companies in the context of Russia’s war against Ukraine. The amendments were approved under the State Aid Temporary Crisis Framework.
The existing schemes are an umbrella scheme and an umbrella scheme under which the aid takes the form of guarantees on loans (‘guarantee scheme’) and subsidised loans (‘subsidised loan scheme’).
Germany notified, among others, the following modifications of the existing schemes:
- an extension of the period in relation to which aid may be granted, until 31 December 2023
- the introduction of the possibility to convert debt instruments, such as loans and guarantees, into other forms of aid, such as direct grants.
Lastly, for the subsidised loan scheme, the amendments aim at adjusting the base rate applicable for the calculation of the reduced interest rates.
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.
Source: State aid: Commission approves amendments to German schemes, including up to €45 billion budget increase, to support companies in context of Russia’s war against Ukraine