Brussels: Europe and the Arabs
A statement was issued by the headquarters of the executive body of the European Union in Brussels, which included a reaction to a judicial decision regarding the Commission’s approval of, inter alia, the provision of financial assistance from the German government to Lufthansa. Objections to state aid provided by Germany to Deutsche Lufthansa AG and approval of Danish and Swedish plans to contribute to the recapitalization of SAS.
We will carefully study the provisions and their implications promptly. We recognize the uncertainty the provisions create for the airlines involved and the aviation industry in general. While it is too early to give any indication of an appropriate course of action, all options are on the table at this point.
On 25 June 2020, the Commission approved, under the Interim Framework for Government Assistance, plans for Germany to contribute €6 billion to the recapitalization of Deutsche Lufthansa, the parent company of the Lufthansa Group, subject to certain commitments to reduce competition distortions. The recapitalization measures were fully recovered by Deutsche Lufthansa.
Pursuant to the SAS decision of August 11, 2020, the Commission approved Danish and Swedish assistance to contribute up to SEK 11 billion (approximately €1 billion) to recapitalize SAS on the basis that it is internal market compliant under Article 107(3(b) TFEU as interpreted by the Temporary Framework for government assistance. At this stage, the Committee is in close and constructive contact with the Danish and Swedish authorities on the implications of state assistance for the ongoing restructuring of SAS. There is no immediate, direct link between today's provisions and the ongoing work for future restructuring of SAS."
The European Union Court of First Instance canceled the green light given by the European Commission regarding the recapitalization of the German airline "Lufthansa", with six billion euros (6.7 billion US dollars), to save the company during the emerging Corona virus (Covid-19).
The court said in a statement - Wednesday - that the commission agreed after it considered that Lufthansa was unable to finance itself in the markets to meet its needs.
And the European Commission can file an appeal against this decision before the European Court of Justice, which is the European Union's highest judicial body, and the European Union had earlier given the green light to support the government's plan to rescue the German airline Lufthansa, which is going through difficult circumstances.
It is noteworthy that the European Commission agreed to pump German government funds amounting to six billion euros to keep “Lufthansa” steadfast in the face of challenges with the outbreak of the Covid-19 pandemic and its great negative impact on the aviation industry, but it imposed strict conditions, and the huge rescue package also includes three billion euros in loan guarantees. the public.