ANNOUNCEMENT 04 Mar 2009In March 2009, the government of Luxembourg announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
the letter from the European Union to Luxembourg - Brussels 11.3.2009 C(2009) 1937 'french'. Available from : http://ec.europa.eu/eu_law/state_aids/comp-2009/n128-09.pdf
the letter from the European Union to Luxembourg - Brussels, 29.7.2011 C(2011) 5507 final 'french'. Available from : http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_33287
On 4 March 2009 the Luxembourgian authorities contacted the European Commission regarding their intention to introduce a state guarantee scheme of EUR 500 million. The aid is granted in the form of subsidized guarantees for investment credit and working capital.
The reason for introducing the scheme is the global economic crisis that is affecting also the economy of Luxembourg. The beneficiaries of the scheme will be companies that operate in the geographical area of Luxembourg, and that are in financial difficulties. According to the Luxembourgian authorities there will be less than 50 companies receiving the aid.
The EC gave the following assessment:
"The measure is selective, because the aid will be granted to only certain businesses. The measure confers an advantageto the beneficiaries by providing them government guarantees for loans that would not be available in the absence of the measure, which distorts or threatens to distort competition." (par. 24 of the letter from the European Union to Luxembourg - Brussels 11.3.2009 C(2009) 1937.
The Commission has decided to consider the aid to be compatible with the internal market pursuant to Article 87(3)(b) EC.
Prolongations of the state aid scheme for companies for the purpose of recovering the economy - SA.33287(2011/N)
On 8 July 2011 the Luxemburgian authorities contacted the EuropeanCommission regarding their intention to prolong their temporary stateguarantee scheme. The estimated annual budget of the state guaranteescheme is EUR 500 million, and it will expire on 31 December 2011.
A state measure in the GTA database is assessed solely in terms of theextent to which its implementation affects the extent of discriminationagainst foreign commercial interests. On this metric, the state aidproposed here is discriminatory.