On Wednesday 4 May, the European Commission authorised a German ‘umbrella scheme’ of around €11 billion to support businesses in various sectors in the context of Russia’s invasion of Ukraine. The support scheme was authorised under the State aid Temporary Crisis Framework.
This German scheme follows another measure authorised on 19 April 2022. Under the German ‘umbrella scheme’, which will be administered by federal, regional and local authorities, aid will take the form of loan guarantees and subsidised loans.
The aim of the system is to ensure that sufficient liquidity is available to companies that need it. The measure will be open to all sectors, except for credit and financial institutions.
The maximum amount of the loan per beneficiary, which can either benefit from subsidised interest rates or a public guarantee, will be equal to 15% of its average total annual turnover over a predefined period or 50% of the energy costs incurred over a predefined 12-month period.
In exceptional cases and with appropriate justification, the amount of the loan may be increased to cover the liquidity needs of the beneficiary over a period of 12 months for small and medium-sized enterprises (SMEs) and over a period of 6 months for large enterprises. (Original version in French by Lionel Changeur)