The European Commission has given the green light to Germany’s planned public bailout of financially troubled shipbuilder Meyer Werft, the commission announced on Thursday.
The European Commission ruled that the government’s rescue package does not pose competition problems in the EU’s common market.
De Meyer Werft, a major employer in northern Germany and leading cruise ship builder, ran into financial difficulties after contract prices for ships were set well in advance and failed to keep pace with rising costs, which skyrocketed following the coronavirus pandemic shots.
The rescue plan involves the German federal government and the state government of Lower Saxony each contributing €200 million ($210 million) to Meyer Werft.
In return, they will acquire an 80.73% stake in both the Meyer Werft shipyard in Papenburg and the Neptun Werft shipyard in Rostock, according to the Ministry of Economic Affairs.
In addition, according to the ministry, the federal and state governments will guarantee up to 80% of bank loans to Meyer Werft for a total amount of €2.6 billion.
Economy Minister Robert Habeck said in September that Meyer Werft “is of system importance for the maritime industry with many thousands of jobs”, and that the shipyard could also play an important role in Germany’s energy transition.
