IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Jun 2012 | Removal date: open ended
Still in force

Loan guarantee

On 2 June 2012, Germany notified the EC to rescue the P+S Werften GmbH through a state guarantee. P+S Werften GmbH is a shipyard existing since 2010 and the result of a merger between "Peene-Werft GmbH" and "Volkswerft Stralsund GmbH" 
 
The guarantee is a 100 % state guarantee of the Land "Mecklenburg-Vorpommern (50% is counter-guaranteed by the Federal State) to back a loan of EUR 152.4 mio coming from the LFI (Landesförderinstitut Mecklenburg-Vorpommern). The amount is split into different tranches. The first tranche EUR 19 mio was carried out on 4 June 2012. The interest rate is 11.67 % but can be lowered retroactively.
 
Such a contribution by the Statecan be considered 'as a favouring of certain undertakings'article 107(1) TFEU. Nevertheless, the favouring can be justified under article 107(3b) TFEU: a non-compliances with article 107(1) is allowed with respect to"remedy a serious disturbance in the economy of a Member state".
 
Germany states that the shipyard is considered to be in difficulty according to the "Rescue and Restructuring Guidelines" Article 10 (c) "fulfils the criteria under its domestic law for being the subject of collective insolvency proceedings" (page 5 of the EC letter to Germany - Brussels 11.07.2012 c(2012) 4646 final. P+S Werften is subject of collective insolvency proceedings according to par. 17 and 18 of the German Insolvency Code ("Insolvenzordnung").
 
The EC confirms a potential trade distortion, arguing: " When aid granted by a Member State strengthens the position of an undertaking compared to other undertakings competing in intra-Union trade, the latter must be regarded as affected by that aid. Indeed there is trade between Member States in the market for ships." (par. 11) Hence, "The measure is apt to improve the competitive position of the beneficiary in relation to its competitors in the internal market and consequently distorts or threatens to distort competition and affect trade between the Member states" (par. 11, letter from the EC to Germany - Brussels 11.07.2012 c(2012) 4646 final)
 

The EC concludes "the rescue aid to P+S Werften consisting of a guarantee backing a loan of EUR 152.4 million is compatible with the internal market under Article 107(3)(c) TFEU." 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.
 
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.

 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods
8906 Other vessels, including warships and lifeboats other than rowing boats.
890690 Other
8907 Other floating structures (for example, rafts, tanks, coffer dams, landingstages, buoys and beacons).
890710 Inflatable rafts
494 Pleasure & sporting boats
8903 Yachts and other vessels for pleasure or sports; rowing boats and canoes.
890310 Inflatable
890391 Sailboats, with or without auxiliary motor
890392 Motorboats, other than outboard motorboats
890399 Other

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