ANNOUNCED AS TEMPORARYNo
Capital injection and equity stakes (including bailouts)
On 27 October 2008 the Commission approved aid scheme No N 512/2008 (Rescue package for financial institutions in Germany) by means of Decision C(2008) 6422. On 11 December 2008 Germany notified the Commission of amendments to the aid scheme, which concern, in particular, the remuneration for capital injections in line with the Commission Communication on recapitalization of 5 December 2008.
In order to stabilize the financial market the Federal Republic of Germany passed the Financial Market Stabilization Act (Finanzmarktstabilisierungsgesetz - 'FMStG') on 18 October 2008. To finance the measures a Financial Market Stabilization Fund (Finanzmarktstabilisierungsfonds - 'Fund') was established, backed by Germany.
The German authorities acknowledged that newnotified scheme has the nature of an aid measure. However, Germany pointed out that the new package of measures is urgently needed in order to shield the German and European financial markets from damage. Germany considered the aid scheme to be compatible with the common market inasmuch as it helps to 'remedy a serious disturbance in the economy of a Member State' within the meaning of Article 87(3)(b) of the EC Treaty. The German authorities took the view that the notified aid scheme does not involve any undue distortions of competition or any adverse spill-over effects for other Member States.
The Commission agreed with the German authorities that the recapitalization of financial institutions, the guarantees and the risk assumption for financial institutions affected by the crisis constitute aid to those institutions within the meaning of Article 87(1) of the EC Treaty but gave the following assessment of the measure:
"The recapitalization, the guarantees for new liabilities and the risk assumption will enable the beneficiaries to secure the necessary capital and liquidity on more favorable terms than would otherwise be possible in the light of the prevailing conditions in the financial markets. Since this confers an economic advantage on the beneficiaries and strengthens their position vis-ŕ-vis their competitors in Germany and in other Member States, these measures distort competition and affect trade between Member States. The advantage is selective since it benefits only beneficiaries under the scheme and is provided through state resources." (par. 43 of the letter from the EC to Germany - Brussels, 12. XII. 2008 C(2008) 8629 fin).
The Commission concluded, however, that the amended measures also constitute a state aid scheme within the meaning of Article 87(1) of the EC Treaty. Since the above-mentioned new aid measures also fulfill the conditions under Article 87(3)(b) of the EC Treaty, this aid measure is also compatible with the common market, with the result that the Commission raises no objections to it.
Reactivation of the rescue scheme for financial institutions in Germany - State aid SA.34345 (2012/N):
On 10 February 2012 Germany notified a reactivation of that scheme under the 'Second Financial Market Stabilization Law' which will be effective until 31 June 2012. On 5 march 2012, the Commission decided not to raise objections.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
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