Germany

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

• on 22 December 2021, the Commission approved a €88 million support measure for Deutsche Bahn AG. The assistance, in the form of an equity injection, aims to compensate the beneficiary for the damages suffered by its subsidiary DB Cargo due to the coronavirus outbreak.

• on 11 October 2021, the Commission approved a €150 million scheme to support organisers of fair trades and exhibitions in the context of the coronavirus outbreak. The scheme, open to organisers of all sizes, aims to compensate them for the costs of organising events scheduled to take place between 1 October 2021 and 30 September 2022, in case of cancellations on the background of the restrictive measures in place to limit the spread of the virus.

• on 11 August 2021, the Commission confirmed that a €550 million support measure in favour of Deutsche Bahn was in line with EU state aid rules. The measure, in the form of an equity injection, aims to compensate Deutsche Bahn for damages suffered by its subsidiary DB Fernverkehr due to the coronavirus outbreak between 16 March and 7 June 2020 with respect to domestic travels and between 16 March and 30 June 2020 in relation to international travels. The measure aims to mitigate the high operating losses and the significant decline in revenues of the company.

• on 2 August 2021, the Commission approved two schemes to support the rail freight sector and the long-distance rail passenger sector in the context of the coronavirus outbreak. The measures, with budgets of €2.1 billion and €410 million respectively, aim to support long-distance rail passenger and freight operators by relieving them of the infrastructure charges and thus helping prevent the loss of market shares regarding competing modes of transport.

• on 27 July 2021, the Commission confirmed that an aid package by Germany in favour of ‘Condor Airline’ was in line with EU state aid rules. The approval of the aid package, based on three separate Commission's decisions, relates to two measures to compensate Condor for damages suffered as a result of the coronavirus outbreak, worth in total €204.1 million, and €321.2 million of restructuring support to enable Condor's return to viability.

• οn 9 July 2021, the Commission approved, under EU state aid rules, a €750 million scheme to reimburse travellers in case of insolvency of package travel organisers. Under the scheme, the aid, in the form of a state guarantee on future loans that may be taken out by the Travel Insolvency Fund, aims to compensate the beneficiaries and ensure that consumers are protected at all times. 

• οn 31 May 2021, the Commission confirmed that a €10 billion scheme to compensate companies for damages related to the coronavirus outbreak was in line with the state aid Temporary Framework. The scheme entitles companies from all sectors to compensation in the form of direct grants, for damages suffered due to the full closure of their activities as a result of the coronavirus outbreak, and the restrictive measures imposed by the government to contain the spread of the virus.

• οn 25 May 2021, the Commission approved, under EU state aid rules, the modification of an existing aid scheme to support rail freight operators in Germany by partially compensating track access charges. The amended scheme, which includes a budget increase and a further reduction of the track access charges due by rail freight operators, aims to contribute to reducing road congestion and CO2 emissions, and to mitigate the effects of the coronavirus outbreak on the German rail freight sector.

• on 25 January, under EU state aid rules, a €642 million German federal umbrella scheme to compensate companies active in the trade fairs and congress sector for damages suffered due to the coronavirus outbreak, and the specific restrictive measures put in place by the government to limit the spread of the virus. The scheme, open to owners and operators of fairs and congress infrastructure in Germany, as well as intermediary companies, aims to cover up to 100% of the loss of profit directly resulting from the prohibition of events.

• on 22 January 2021, a €12 billion German umbrella scheme aimed at compensating companies for damages suffered due to restrictive measures to contain the coronavirus outbreak to be in line with EU state aid rules. Under the scheme, companies from all sectors are entitled to compensation in the form of direct grants, for damages suffered during the lockdown periods imposed by the German government in March/April and November/December 2020 to limit the spread of the coronavirus.

• on 5 January, German plans to support the TUI AG tourism group recapitalisation with up to €1.25 billion, as part of a wider financial support package. Under the state aid Temporary Framework, the support aims to prevent the default and insolvency of the TUI group, considering the substantial losses incurred due to the coronavirus outbreak and the travel restrictions imposed by the German Federal Government and other countries. 

• on 2 December, plans to set up a scheme under which the German federal and regional authorities can invest through debt and equity instruments in enterprises affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support will take the form of subordinated loans and recapitalisation instruments, in particular equity instruments and hybrid capital instruments. Individual measures will be limited to €250 million per beneficiary, the total provisional budget of the scheme being around €3.5 billion. The scheme complements the support German companies may receive under the German Federal Economic Stabilisation Fund, approved by the Commission on 8 July 2020, mostly targeted at large companies.

• on 27 November, under EU state aid rules, a German scheme to compensate accommodation providers in the child and youth education sectors, for the loss of revenue caused by the coronavirus outbreak. The public support, in the form of direct grants, aims to compensate up to 60% of the loss of revenues incurred by eligible beneficiaries in the period between the beginning of the lockdown and 31 July 2020, when their accommodation facilities had to close due to the restrictive measures implemented in Germany. The budget of up to €75 million is also available to regional authorities, at Länder or local level, who may also make use of this scheme from the local budgets.

• on 23 November, a German ‘umbrella' schemeto support the companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the scheme aims to provide extraordinary economic assistance to all German businesses, self-employed individuals, associations and institutions whose operations are temporarily closed as a result of the lockdown measures imposed by the government to limit the spread of the virus. The measure is a Germany-wide scheme with an estimated budget of €30 billion.  Support may take the form of direct grants, state guarantees for loans or subsidised public loans. The scheme will also enable Germany to support to companies affected by the lockdown measures implemented in November 2020.

• on 29 September, a German scheme to compensate youth hostels, school country homes, youth education centres and family holiday centres in Bavaria for the loss of revenue caused by the coronavirus outbreak. The public support will take the form of direct grants and will compensate the damage suffered up to a maximum of 60% of the loss of revenues incurred by eligible beneficiaries in the period from 18 March 2020 to 31 July 2020. During this period, the beneficiaries had to close their accommodation facilities due to the restrictive measure that the German authorities implemented to limit the spread of the coronavirus. When calculating the loss of revenue, reductions in costs resulting from income generated during the lockdown (e.g. cancellation fees) and financial aid granted by public authorities, including that granted under the measure with case number SA.56974 will be deducted. This will ensure that no more than the damage suffered can be compensated. The measure will be funded via the “Corona Programme Social Affairs” fund of the Free State of Bavaria, which has a total budget of €26 million. The Commission assessed the measure under Article 107(2)(b) TFEU.

• on 20 August 2020, German plans to set up a €46 billion fund at the level of the German State (Land) of Bavaria to provide guarantees and invest through debt and equity instruments in enterprises affected by the coronavirus outbreak in Bavaria. Under the scheme, the support will take the form of (I) guarantees (that are expected to mobilise €26 billion), as well as (II) subsidised debt instruments in form of subordinated loans, and (III) recapitalisation instruments (in total up to €20 billion), in particular equity instruments (acquisition of newly issued ordinary and preferred shares or other forms of shareholding) and hybrid capital instruments (namely convertible bonds and silent participations).

• on 11 August 2020, under the EU State aid rules, a German aid scheme to support airports in the context of the coronavirus outbreak. The scheme was approved partially based on Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU) and partially under the State aid Temporary Framework. Under the scheme, which will be open to all operators of German airports, the German authorities at different levels (federal, state and municipal) will be able to: Compensate airports for revenue losses directly caused by the coronavirus outbreak during the period 4 March - 30 June 2020, in the form of direct grants; Provide liquidity support in the form of grants, guarantees on loans, subsidised interest rates and deferrals of certain taxes and charges to airports facing liquidity shortages as a result of the restrictions that Germany and other Member States had to impose to limit the spread of the coronavirus. Most liquidity support measures covered by the scheme, with the exception of deferrals of tax and charges, fall under existing schemes previously approved by the Commission under the Temporary Framework (“Bundesregelung Kleinbeihilfen 2020”, “Bundesregelung für niedrigverzinsliche Darlehen 2020” and “Bundesregelung Bürgschaften 2020”). The Commission's assessment in the present case is therefore limited to tax and charges, which are not covered by previously approved schemes. With respect to the damage compensation, the Commission assessed the measure under Article 107(2)(b) TFEU, which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for the damages directly caused by exceptional occurrences. The Commission considers that the coronavirus outbreak qualifies as an exceptional occurrence, as it is an extraordinary, unforeseeable event having a significant economic impact.

• on 7 August 2020, the Commission approved under EU State aid rules a €6 billion German scheme to compensate regional and local public passenger transport companies for the losses incurred due to the coronavirus crisis. The German government has put in place emergency measures necessary to limit the spread of the coronavirus (closure of schools and nurseries, extended telework arrangements, social distancing rules and restrictions on gatherings). The measures have severely affected regional and local public transport services, resulting in a passenger decrease between 70% and 90% in the road and rail transport, and subsequently, in a massive loss of revenue. Under the scheme, transport companies are entitled to compensation in the form of direct grants for losses incurred between 1 March and 31 August 2020. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), enabling the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for the damages directly caused by exceptional occurrences.

• on 31 July 2020, a €840 million German State guarantee scheme to cover vouchers issued by travel operators for cancelled travel packages booked before 8 March 2020. Thanks to this scheme, the German State makes sure that travellers who accept vouchers will be able to either use them or receive a full refund, even if the issuing travel operator becomes insolvent. Tour operators will pay a premium equal to 0.15% of the value of the voucher covered for small and medium-sized enterprises and 0.25% for large companies.

• on 8 July 2020, German plans to set up a fund with a budget of up to €500 billion for providing guarantees and investing through debt and equity instruments in enterprises affected by the coronavirus outbreak. The German support measure is a fund (‘Wirtschaftsstabilisierungsfonds') to provide liquidity and capital support to German enterprises affected by the coronavirus outbreak. Under the scheme, the support will take the form of (I) guarantees (that are expected to mobilise €400 billion of the total amount), as well as (II) subsidised debt instruments in form of subordinated loans, and (III) recapitalisation instruments (in total up to €100 billion), in particular equity instruments (acquisition of newly issued ordinary and preferred shares or other forms of shareholding) and hybrid capital instruments (namely convertible bonds and silent participations).

• on 25 June 2020, German plans to contribute €6 billion to the recapitalisation of Deutsche Lufthansa AG (DLH), the parent company of Lufthansa Group. The recapitalisation measure is part of a larger support package that also includes a state guarantee on a €3 billion loan that Germany plans to grant to DLH as individual aid under the German scheme approved by Commission decision of 22 March 2020. The recapitalisation measure comprises: (i)   €300 million equity participation through the subscription of new shares by the State, corresponding to 20% of DLH's share capital; (ii)   €4.7 billion silent participation with the features of a non-convertible equity instrument; and (iii)  €1 billion silent participation with the features of a convertible debt instrument. The recapitalisation will be financed by the Economic Stabilisation Fund (Wirtschaftsstabilisierungsfond), a special fund established by Germany in order to provide financial support to German companies affected by the coronavirus outbreak. In the second quarter of 2020, Member States and third countries have implemented travel restrictions necessary to face the health emergency. This has resulted in a heavy decline in travel, with a significant effect on the entire air travel industry, including Lufthansa Group's carriers: Deutsche Lufthansa, Swiss International, Brussels Airlines, Austrian Airlines, Air Dolomiti, Eurowings, Germanwings, Edelweiss Air, and SunExpress Deutschland. DLH plays a major role in the German economy, notably because it ensures essential connectivity services within Germany through an extensive domestic network. It also ensures international connectivity through network airlines based in major hubs such as Munich and Frankfurt airports. DLH's airfreight also contributes significantly to foreign trade, contributing to the German export economy and guaranteeing a steady flow of goods for all citizens in these difficult times. Commitments to preserve effective competition: DLH will benefit from a recapitalisation measure above €250 million and holds a significant market power on the relevant markets on which it operates. Before the coronavirus outbreak, its hub airports of Munich and Frankfurt were congested, meaning that landing and take-off slots were in short supply. Therefore, in line with requirements of the Temporary Framework, additional measures to preserve effective competition are necessary. These consist of the divestment of up to 24 slots/day at Frankfurt and Munich hub airports and of related additional assets to allow competing carriers to establish a base of up to four aircraft at each of these airports. These measures would enable a viable entry or expansion of activities by other airlines at these airports to the benefit of consumers and effective competition.

• a German “umbrella” scheme supporting: (i) coronavirus relevant research and development (R&D) activities, (ii) investments into testing and upscaling infrastructures that contribute to developing coronavirus relevant medicinal products, and (iii) investments into production facilities for medicinal products needed to respond to the outbreak. The scheme, called "Bundesregelung Forschungs-, Entwicklungs- und Investitionsbeihilfen”, aims to enhance and accelerate both the development and the production of products directly relevant to the coronavirus outbreak. These include medicinal products such as vaccines, hospital and medical equipment (including ventilators), and protective clothing and equipment. The public support will take the form of direct grants, repayable advances and tax advantages. Guarantees to cover losses may also be granted, either in addition to a direct grant, tax advantage or repayable advance, or as an independent aid measure. The measure allows aid to be granted by German authorities at all levels, including the Federal government, regional and local authorities. The scheme is open to all enterprises capable to carry out such activities in all sectors. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

• a state-guaranteed €550 million public loan in favour of German charter airline Condor, in line with EU State aid rules. Germany notified to the Commission an aid measure to partly compensate charter airline Condor for the damage suffered due to the cancellation or re-scheduling of its flights as a result of the imposition of travel restrictions introduced by Germany and by many destination countries to limit the spread of the coronavirus. The support will take the form of a State-guaranteed €550 million public loan granted via the German development bank Kreditanstalt für Wiederaufbau (KfW). The exact damage suffered by Condor as a result of the outbreak will be quantified after the coronavirus crisis, based on the airline's operating accounts for the year 2020. The method used to quantify the damage will be subject to the Commission's prior approval. Furthermore, should the German public support exceed the damage actually suffered by Condor due to the coronavirus outbreak a claw-back mechanism will be activated. The risk of the State aid exceeding the damage is therefore excluded. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for damage directly caused by exceptional occurrences.

• under EU State aid rules, a German guarantee scheme to support the trade credit insurance market in the face of the coronavirus outbreak. Germany notified to the Commission a State guarantee scheme supporting the insurance of trade between companies affected by the coronavirus outbreak. Trade credit insurance protects companies supplying goods and services against the risk of non-payment by their clients.

• on 11 April 2020, amendments to two German schemes to support companies affected by the coronavirus outbreak (“ Bundesregelung Kleinbeihilfen 2020” and “Bundesregelung Darlehen 2020”), under the Temporary Framework. The modifications to the earlier approved support measures concern modifications of the schemes in light of the amendments to the Temporary Framework approved by the Commission on 3 April 2020: The “ Bundesregelung Kleinbeihilfen 2020” scheme to support companies affected by the coronavirus outbreak provided for aid to be granted via direct grants, repayable advances and tax or payment advantages. The amendment approved allows also for aid in the form of loans, guarantees and equity. In particular, under the amended Temporary Framework, guarantees can cover 100% of the risk of loans with a nominal amount of up to €800,000. The scheme enabling granting of loans at favourable terms “ Bundesregelung Darlehen 2020” is now amended in order to allow for subsidised interest rates for loans provided to beneficiaries.

• on 21 March 2020, under Article 107(3)(b), two German aid schemes (SA.56714) . These schemes will allow the German promotional bank Kreditanstalt für Wiederaufbau to provide liquidity in the form of subsidised loans to companies affected by the Coronavirus outbreak, in close cooperation with commercial banks.

• on 24 March 2020, another German scheme to support companies affected by the coronavirus outbreak. The aid under the "Bundesregelung Kleinbeihilfen 2020” scheme takes the form of direct grants, repayable advance or tax and payment advantages.

• on 24 March 2020, a German scheme to enable the granting of loan guarantees at favourable terms to help businesses cover immediate working capital and investment needs. This support will be implemented through German federal and regional authorities, and promotional and guarantee banks.

• on 2 April 2020, a German State aid scheme extending measures adopted on 22 March 2020 to support the economy in the context of the coronavirus outbreak. In particular, the extension enables support to be granted by other regional authorities and promotional banks not covered by the existing measures. This new scheme is open to all companies of the real economy, and enables the granting of loans at favourable terms to help businesses cover immediate working capital and investment needs.