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EU Commission defends conditions for Lufthansa aid

2020-05-29T16:22:51.192Z


Because it is not simply waving the Lufthansa aid package through, the EU Commission has to accept violent allegations from German politics. However, the responsible Vice President Margrethe Vestager does not seem to think about giving in.


Because it is not simply waving the Lufthansa aid package through, the EU Commission has to accept violent allegations from German politics. However, the responsible Vice President Margrethe Vestager does not seem to think about giving in.

Brussels (AP) - The EU Commission has defended its call for conditions for the Lufthansa government's rescue package.

It is not about creating additional obstacles, but about preventing distortions of competition, said Vice President Margrethe Vestager in Brussels. She did not comment on the details of the ongoing discussions, but said: "It is a high priority to reach an agreement. We are in very close contact, but I cannot say when we will be finished."

Vestager emphasized that the conditions are the same for everyone. Any Member State wishing to recapitalize a powerful company with more than EUR 250 million would have to ensure that the starting conditions in the internal market remained the same.

Vestager explained that the EU Commission is calling on Lufthansa to hand over take-off and landing rights in return for state aid in relation to the importance of slots for competition. "If you want to compete with them, you need slots at an airport," said the Danish.

The German government wants to support Lufthansa, which was badly hit by the corona crisis, with a nine-billion euro aid package. The EU Commission is to prevent distortions of competition in the course of state aid.

The rescue plan for Lufthansa provides that the State Economic Stabilization Fund (WSF) will subscribe to shares in the course of a capital increase in order to build up a 20 percent stake in the airline's share capital. In addition, silent deposits totaling up to EUR 5.7 billion and a loan of up to EUR 3 billion are planned.

Aid is needed for Lufthansa because the corona pandemic has brought the company's business, with the exception of freight, to a standstill with the following travel restrictions. As a result, tens of thousands of jobs are on the verge in the group with around 138,000 employees.

The personnel representatives of the approximately 23,000 Lufthansa flight attendants personally appealed to Vestager to give in. They pointed to "precarious employment relationships" with low-cost providers, who could be the beneficiaries of Lufthansa restrictions. Lufthansa, on the other hand, offers its people fair and adequate working conditions. On this basis, one does not ignore fair competition.

The Lufthansa Supervisory Board has also not yet approved the rescue pact. The company cited the possible conditions imposed by the EU Commission as the reason.

German politicians have been asking the EU Commission to give in for days. Government spokesman Steffen Seibert once again emphasized on Friday that the rescue package was balanced and would take into account the needs of the company as well as those of taxpayers and employees.

Federal Transport Minister Andreas Scheuer (CSU) became even clearer. "The EU Commission has to reject the restrictions for Lufthansa and act just as easily as with Air France or Alitalia," he told the newspapers of the Funke media group.

Vestager replied on Friday that there was a fundamental difference between the planned liquidity aid for Lufthansa and loans for Alitalia and Air France. A loan leads to increasing debt, while additional capital can even make it easier for a company to raise money on the capital market.

"In addition, a very strong shareholder comes on board," said Vestager, referring to the German state. It is very likely that other investors and competitors would see this as a strengthening of the company. The Commission Vice-President also pointed out that the EU Member States had been consulted extensively before the rules on state aid in the Corona crisis were adopted.

The leader of the CDU / CSU group in the European Parliament, Daniel Caspary, was outraged after Vestager's statements. "It is a sign of poverty that Ms. Vestager regularly weakens European companies in global competition, as Lufthansa is likely to do now, or recently the train manufacturers Alstom and Bombardier," commented the CDU politician. The commission should urgently approve the planned Lufthansa rescue without further conditions.

Source: merkur

All news articles on 2020-05-29

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