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Photo Credit: Visit Berlin

Kongres Magazine has prepared an overview of European State Aid for Covid-19 for the meetings industry. Considering the meetings and exhibition industry was one of the most affected during the corona crisis, state aid is of utmost importance for the survival and resilience of the sector. Below, the support from the EU and European governments to Germany’s exhibition industry is listed.

We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.

CASE STUDY: GERMANY

Germany was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.

EMERGENCY HELP

Expenditure measures (direct grants):

On 11 April 2020, amendments to two German schemes to support companies affected by the coronavirus outbreak (“Bundesregelung Kleinbeihilfen 2020” and “Bundesregelung Darlehen 2020”), under the Temporary Framework were announced. The scheme supported companies affected by the coronavirus outbreak provided for aid to be granted via direct grants, repayable advances and tax or payment advantages.

Measures related to public guarantees, loans, tax deferrals:

On 24 March 2020, a German scheme to enable the granting of loan guarantees at favourable terms to help businesses cover immediate working capital and investment needs were introduced. This support was implemented through German federal and regional authorities, and promotional and guarantee banks.

The amendment allowed accepted on 11 April 2020 was also intended for aid in the form of loans, guarantees and equity. In particular, guarantees could cover 100% of the risk of loans with a nominal amount of up to €800,000. The scheme enabling granting of loans at favourable terms “Bundesregelung Darlehen 2020” was later amended in order to allow for subsidised interest rates for loans provided to beneficiaries.

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Photo Credit: Stuttgart Convention Bureau

On 8 July 2020, Germany set up a fund with a budget of €500 billion for providing guarantees and investing through debt and equity instruments in enterprises affected by the coronavirus outbreak.

RESTART HELP

Expenditure measures (direct grants):

On 31 July 2020, an €840 million German State guarantee scheme to cover vouchers issued by travel operators for cancelled travel packages booked before 8 March 2020 was introduced. Thanks to this scheme, the German State made sure that travellers who accepted vouchers were able to either use them or receive a full refund, even if the issuing travel operator became insolvent. Tour operators paid a premium equal to 0.15% of the value of the voucher covered for small and medium-sized enterprises and 0.25% for large companies.

Measures related to public guarantees, loans, tax deferrals:

On 8 July 2020, Germany set up a fund with a budget of up to €500 billion for providing guarantees and investing through debt and equity instruments in enterprises affected by the coronavirus outbreak. The German support measure is a fund (‘Wirtschaftsstabilisierungsfonds’) to provide liquidity and capital support to German enterprises affected by the coronavirus outbreak. Under the scheme, the support took the form of (I) guarantees (that are expected to mobilise €400 billion of the total amount), as well as (II) subsidised debt instruments in form of subordinated loans, and (III) recapitalisation instruments (in total up to €100 billion), in particular, equity instruments (acquisition of newly issued ordinary and preferred shares or other forms of shareholding) and hybrid capital instruments (namely convertible bonds and silent participations).

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Photo Credit: Visit Berlin/Mike Auerbach

RECOVERY HELP

Expenditure measures:

On 22 January 2021, a €12 billion German umbrella scheme aimed at compensating companies for damages suffered due to restrictive measures to contain the coronavirus outbreak to be in line with EU state aid rules was announced. Under the scheme, companies from all sectors are entitled to compensation in the form of direct grants, for damages suffered during the lockdown periods imposed by the German government in March/April and November/December 2020 to limit the spread of the coronavirus.

On 25 January, under EU state aid rules, a €642 million German federal umbrella scheme to compensate companies active in the trade fairs and congress sector for damages suffered due to the coronavirus outbreak, and the specific restrictive measures put in place by the government to limit the spread of the virus was announced. The scheme, open to owners and operators of fairs and congress infrastructure in Germany, as well as intermediary companies, aims to cover up to 100% of the loss of profit directly resulting from the prohibition of events.

To find out more about Germany’s aid scheme, click here.

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