Brussels, 27/02/2009 (Agence Europe) - The European Commission announced on Friday 27 February that it had authorised a number of national state aid schemes to boost the economy, suffering as a result of the financial crisis. German and French subsidised guarantee schemes for financial firms were approved, as was a similar British initiative which includes inter alia support for “green” companies.
All the measures have been set several conditions, according to a Commission press release. Firstly, “safe harbour” guarantee premiums may only be applied for a maximum of 10 years. For the first two years, however, a subsidy of up to 25% for SMEs, or 15% for large companies may be granted towards the cost of the premium. Furthermore, the loans for which there is a state guarantee have to be concluded by 31 December 2010, and the amount of the loan must not be greater than the company's total annual wage bill, including social security costs. The German and French schemes allow authorities to grant aid in the form of subsidised guarantees for investment and working capital loans. The British plan has two measures, submitted to the Commission on 10 February: a loan guarantee measure will allow companies to receive state guarantees, at subsidised rates, to raise investment or working capital; and a measure to reduce interest rates for companies active in “green” products. This latter, which will initially apply to the car industry, seeks to encourage investment in products “with an environmental advantage”. The UK authorities have undertaken to give preference to the use of loan guarantees rather than interest rate subsidies whenever possible. (C.D./transl.rt)