Brussels – The European Commission has given the green light for Germany’s planned public bailout for the financially troubled shipbuilder Meyer Werft, the commission announced on Thursday.
The European Commission ruled under the EU Merger Regulation that the government rescue package doesn’t pose any competition concerns across the EU’s common market.
The Meyer Werft, a major employer in northern Germany and a leader builder of cruise ships, ran into financial trouble after contracted prices for ships, settled well in advance, failed to keep pace with rising costs, which shot upward after the coronavirus pandemic.
The rescue plan involves Germany’s federal government and the Lower Saxony state government 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 Economy Ministry.
In addition, the federal and state governments will guarantee up to 80% of bank loans to Meyer Werft totalling €2.6 billion, according to the ministry.
Economy Minister Robert Habeck said in September that Meyer Werft was “of systemic 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.
