Press Release: State aid: Commission authorises German temporary reduced‑interest loans scheme for green products

The European Commission authorised, under EC Treaty state aid rules, a scheme offering reduced-interest loans to businesses investing in the production of environmentally friendly products, as part of the German package to tackle the current economic crisis. It will allow state, regional or local authorities to grant until 31 December 2010 loans with subsidised interest payments until 31 December 2012 at the latest. The scheme met the conditions of the Commission’s Temporary state aid framework that gives Member States additional possibilities for providing businesses with improved access to financing during the economic and financial crisis. In particular, it respected the minimum interest rates and environmental standards defined in the Framework and it applied only to businesses that were not in difficulties before 1 July 2008. It was therefore compatible with Article 87(3)(b) of the EC Treaty, which permits aid to remedy a serious disturbance in the economy of a Member State.