2024-09-11 22:46:34
The troubled Meyer Werft can look forward to government support. The rescue package for the shipbuilder is in place.
The billion-euro bailout of the financially troubled Meyer Werft by the state has been decided. Both the Budget Committee of the Bundestag and the Budget Committee of the Lower Saxony State Parliament gave the green light for the aid.
The Meyer Werft shipyard in Papenburg looks back on a history spanning more than 200 years and is today best known for cruise ships. However, it is in a crisis that threatens its existence: it has to raise almost 2.8 billion euros to finance new ship construction by the end of 2027. The state is now helping the company.
The federal government and the state of Lower Saxony want to buy around 80 percent of Meyer Werft for 400 million euros. In addition, both the federal government and the state are providing guarantees of around one billion euros each to secure loans from banks. According to the Federal Ministry of Economics, the state support will be state aid-free, i.e. without the need for EU approval.
“By temporarily stabilizing the shipyard financially, we are securing the future of the shipyard and thousands of jobs,” stressed SPD budget officer Dennis Rohde. The Meyer Werft is an important driver of the maritime economy and an employer for around 3,500 employees and well over 10,000 employees in the supply industry. The federal and state governments now share responsibility for getting the company out of its financial difficulties.
According to information from parliamentary circles, the federal government is also pursuing a strategic interest in the rescue. If the geopolitical situation worsens further, the shipyard facilities could also be used for military shipbuilding. In economic terms, however, the federal government expects that the shipyard will still record losses in 2025 and 2026, even if the restructuring plan is implemented.
There is currently no final exit date for the state participation. However, both Berlin and Hanover say that the shipyard should not remain in public hands in the long term.
Chancellor Olaf Scholz had already promised the company federal support at the end of August at the shipyard in Papenburg. Germany’s position as the world’s third largest economy requires a strong maritime economy, and the Meyer Werft is an “industrial crown jewel,” said the SPD politician.
In principle, state aid must be registered with the EU Commission before a country can provide financial support to its companies. According to information from Lower Saxony, the state aid in this case is designed in such a way that it is not legally dependent on the approval of the EU. This week, the EU Commission already ruled that Ryanair and Frankfurt-Hahn Airport must repay German state aid that has already been granted.