• Covid.Coronavirus Spain today, live breaking news

The European Commission (EC) on Wednesday gave its approval to the plan of public aid worth 500,000 million euros with which Germany wants to support companies most affected by the economic crisis caused by the coronavirus.

The fund will consist of guarantees , with which to mobilize up to 400,000 million , subordinated loans and also instruments for the recapitalization, up to 100,000 million, of companies in difficulties, as indicated in a statement the Community Executive.

In addition to the half trillion authorized by Brussels, the German fund can mobilize up to 100,000 million euros more , to refinance the subsidies that have already been notified and authorized by the community services, for which the Commission estimates their total amount at 600,000 million.

Brussels has approved this aid in a time frame that makes EU rules on state aid more flexible to alleviate the lack of liquidity of companies due to the coronavirus crisis . Those companies that had difficulties in December last year will not be able to access these supports.

Aid will only be granted until the end of the year

The guarantees and loans that make up this fund will be limited to the amounts that are strictly necessary to cover the liquidity needs "in the near future" and will also be limited in time, they can only be granted until the end of this year and will have a duration maximum of six years. As for the measures for the recapitalization of companies in difficulties , the support will be to ensure their viability provided that there are no other possible alternatives and that the intervention has an impact on the common interest.

"The regime guarantees that the State is sufficiently remunerated for the risks that taxpayers bear and, as far as recapitalization measures are concerned, that there are incentives for leaving the State as soon as possible," stressed the vice president of the Community Executive. Head of Competition, Margrethe Vestager.

In the opinion of the Community Executive, the German fund offers "necessary, adequate and proportionate" aid to face the serious problems caused by the pandemic in the German economy.

According to the criteria of The Trust Project

Know more

  • Germany
  • European Comission

Settlement of accountsA European market distorted by State aid

MacroeconomicsBrussels vetoes public aid conditional on the repatriation of companies

INTERVIEWAlberto Garzón: "The deficit will have to be reduced through more income and not through spending cuts"

See links of interest

  • Last News
  • Programming
  • English translator
  • Work calendar
  • Daily horoscope
  • Santander League Ranking
  • League calendar
  • TV Movies
  • Cut notes 2019
  • Themes
  • Crystal Palace - Chelsea
  • Watford - Norwich City
  • Valencia CF - Real Valladolid
  • Mirandés - Elche
  • Celta de Vigo - Atlético de Madrid