ANNOUNCED AS TEMPORARYNo
Capital injection and equity stakes (including bailouts)
With decision C(2008) 8629 fin of 12 December 2008, the Commission raised no objection against an amendment of German bank rescue scheme in case N 625/2008 concerning the measures granted to financial institutions under the financial market stabilization law (Finanzmarktstabilisierungsgesetz - FMStG) - State Aid N 330/2009.
With notification of 10 June 2009, Germany requested a prolongation of the rescue package until 31 December 2009.
In its decision C (2008) 8629 fin of 12 December 2008, the Commission concluded that the measures comprised under the German rescue scheme constitute a state aid scheme within the meaning of Article 87(1) of the EC Treaty.
However the Commission found that the measures were compatible with the Common market under Article 87 (3) (b) EC because they were apt to remedy a serious distortion of the German economy. To this end the Commission had assessed the appropriateness, necessity and proportionality of the measures.
The Commission concludes 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 fulfil 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.
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.
"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).
Second prolongation of the German rescue package for financial credit institutions in Germany - State Aid N 665/2009
On 30 November 2009, Germany notified to the Commission a request to prolong the rescue package for an additional period of six months, until 31 June 2010. This request does not concern the asset relief scheme. The Commission decided not to raise objections.
Third extension of the German rescue package for financial credit institutions in Germany - State Aid N 222/2010
On 3 June 2010, Germany notified to the Commission a request to extend the rescue package for an additional period of six months, until 31 December 2010. This request does not concern the asset relief scheme. The Commission decided not to raise objections. Since the prolonged aid measure fulfils the conditions under Article 107(3) (b) TFEU it is compatible with the internal market. (par. 29 of the the letter from the EC to Germany -Brussels, 23.06.2010 C(2010)4261 final)
Fourth extension / reactivation of the German rescue package for financial credit institutions in Germany - State Aid SA.34345
On 10 February 2012, Germany notified a reactivation of the scheme under the "Second Financial Market Stabilization Law" ("Zweites Finanzmarktstabilisierungsgesetz") The measure will only apply "as the crisis continues" and is limited to 30 June 2012. On the 5 March 2012, the Comission recalls its conclusion that this measure is "selective" and will "distort competition and affect trade between Member states" but also recalls the Fullfillment of the conditions under article 107(3)(b) TFUE (page 19 of the letter from the EC to Germany - Brussels 5.3.2012 C(2012)1431 final). Therefore the measure is still compatible with the internal market, so the reactivation of the scheme is approved.
Fifth extension of the German rescue package for financial credit institutions in Germany - State Aid SA.34897
At 29 May 2012, Germany notified the EC about a potential prolongation of the scheme for an additional 6 month until 31 December 2012. The conditions of the scheme should remain the same.
The EC concludes that this prolongation is compatible with the internal market and allows the prolongation for an additional 6 month. (Fullfils conditions under article 107(3) TFEU).
Sixth extension of the German rescue package for financial credit institutions in Germany - State Aid SA.
On 21 November 2012 Germany notified a request for prolongation of the German support scheme for banks, covering the period from 1 January to 30 June 2013, under the 'Third Financial Market Stabilisation Law' (Drittes Finanzmarktstabilisierungsgesetz)the prolongation is in line with the Commission's decisional practice the Third FMStG can therefore be prolonged until 30 June 2013
⚑ Please report this page in case you detect an inaccuracy in its content.