The European Commission said on Thursday it had given the green light for Germany’s planned public bailout for the financially troubled shipbuilder Meyer Werft.
The European Commission ruled under the EU Merger Regulation that the government rescue package does not pose any competition concerns across the European Union’s common market.
Meyer Werft, a major employer in northern Germany and a leading 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.
“We are pleased with the European Commission’s decision and are grateful that the commission made such a quick decision to avoid a long period of uncertainty for our employees, but also for our customers and business partners,” Werft Meyer said.
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.
The state premier of Lower Saxony, Stephan Weil, said: “Now it is finally clear that the federal and state governments can work together to support Meyer Werft on its way to a bright future.”
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.
