On Thursday 2 April, the European Commission approved a German State Aid scheme that extends measures adopted on 22 March to support the economy in the context of the Coronavirus pandemic. The scheme was authorised under the temporary framework for State Aid as a means of supporting the economy in the context of the COVID-19 outbreak.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: "With this scheme, also other public institutions can grant support to the German economy and complement actions by the Kreditanstalt für Wiederaufbau (KfW)”.
Following the approval of the German measures for subsidised loans adopted on 22 March, (see EUROPE 12452/3), Germany notified the Commission of an additional support measure implemented through the German federal and regional authorities and through the development banks.
While the initial scheme was designed in a way that subsidised loans could only be granted by the KfW, this new scheme now also allows other regional authorities and promotional banks to provide support along the same lines. It enables the granting of loans at favourable terms to help businesses cover immediate working capital and investment needs.
The objective of the measure is to provide companies with liquidity to continue their activities. These schemes for subsidised loans are supplemented by a loan guarantee scheme (see EUROPE 12454/11). (Original version in French by Lionel Changeur)