The EU competition commissioner said energy and trade-intensive companies have been particularly hard hit by the current geopolitical crisis.
(Photo: Reuters)
Berlin, Brussels Energy-intensive companies that have to cope with extreme price increases for natural gas and electricity can apply for state subsidies in Germany from Friday. On Thursday, the EU Commission gave the green light for the federal government’s planned aid. The Brussels authority announced that these were necessary, appropriate and proportionate. A total volume of up to five billion euros is planned.
In a joint statement by the finance and economics ministries, it was said that the Federal Office of Economics and Export Control (BAFA) would take care of the implementation. In undisputed cases, the first installment payments of a large part of the funded amount should be possible within weeks.
The money should flow by the end of the year at the latest. The final subsidy and any repayments in the event of new information on the economic development of the companies should then be clarified from 2023.
The aid consists of grants of up to 50 million euros per company. This should at least partially cushion extreme loads. In order to receive the aid, companies must prove that their gas and electricity costs more than doubled in the period from February to September 2022 compared to 2021.
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The program is aimed at industries in the chemical, glass, steel, metals and ceramics sectors, among others. Companies that receive help are not allowed to pay any bonuses during this time.
The grants are part of a larger bailout package the federal government set up in response to the Russian attack on Ukraine. Since then, energy prices have skyrocketed, gas is becoming a scarce commodity and could be rationed in the coming months.
In order to keep companies liquid, special loans are already possible through the KfW development bank. In addition, state guarantees were expanded. And there are hedges for transactions on the electricity and gas exchanges. The grants are now the fourth pillar of the aid package.
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