ANNOUNCEMENT 20 Mar 2009In March 2009, the government of Germany announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
Financial Market Stabilization Supplementary Act (Gesetz zur weiteren Stabilisierung des Finanzmarktes, Finanzmarktstabilisierungserg?nzungsgesetz) published in the German Official Journal on April 8, 2009 (Bundesgesetzblatt Jahrgang 2009 Teil I Nr 18, ausgegeben zu Bonn am 8. April 2009):
http://www.bgbl.de/Xaver/start.xav?startbk=Bundesanzeiger_BGBl&bk=Bundesanzeiger_BGBl&start=//*%5B@attr_id=%27bgbl109s0725.pdf%27%5D#__Bundesanzeiger_BGBl__%2F%2F*%5B%40attr_id%3D'bgbl109s0725.pdf'%5D__1371807981478 (pages 725 to 733)
On 20 March 2009, the German Bundestag amended the Financial market Stabilization Act, by passing the so-called Financial Market Stabilization Supplementary Act ("Gesetz zur weiteren Stabilisierung des Finanzmarktes").
This law amends and replaces parts of the initial scheme from 18 October 2008. The most important aspect is written down in Article 3 which allows for nationalisation of private banks. The amendment describes a complex process for the purchase of bank stock by the state. The law explicitly demands for a solution that respects the interest of the stakeholders. Nevertheless in the case of non-compliance, the law forsees the nationalisation of the bank via expropriation compensated at the market price.
The usage of expropriation will expire on 31 December 2009. The nationalisation of "Hypo Real Estate" as well as the partial nationalisation of "Commerzbank" are based on the Financial market Stabilization Act (see related measures).
The law was issued by the Federal President on April 7, 2009 and entered into force on 9 April 2009.