As of: 07/14/2022 6:39 p.m
Companies whose energy costs have more than doubled will be able to receive state aid in the future. The EU allowed the federal government’s instrument to prevent bankruptcies. The bosses have to forego bonuses for this.
Due to the sharp rise in energy prices, Germany is allowed to support energy-intensive companies with up to five billion euros in state aid. The EU Commission approved the planned grants. “This means that the energy cost containment program for energy-intensive industries can start tomorrow,” said the Ministry of Economy and Finance.
With the payments, the federal government wants to avoid that companies with high energy requirements go bankrupt in view of the sharp rise in energy prices. The EU had to agree because strict rules apply to such aid in order to avoid distortions of competition. However, due to the consequences of the Russian attack on Ukraine, the rules were relaxed. Energy-intensive companies have been “hit particularly hard” by the energy crisis, said EU Competition Commissioner Margrethe Vestager.
Bosses have to forego bonuses
The grants are up to 50 million euros for companies for which electricity and gas have more than doubled. Depending on the difficulty of the situation, three different support levels are provided. The top floor of the company must also undertake not to pay any bonuses to themselves. This is to ensure that only companies that are actually in need take advantage of the aid.