Economy

Lufthansa: Rescue is pending, government steps in with 9 billion

The state is getting nine billion euros at Lufthansa, reports the “Spiegel”.

For this, the federal government receives 25 percent plus one share and two seats on the supervisory board.

Lufthansa shareholders would still have to approve the deal.

Lufthansa, which got into trouble in the Corona crisis, is saved by the state. As the “Spiegel” reports, today there was an agreement at the highest political level. Chancellor Angela Merkel (CDU), Federal Minister of Finance Olaf Scholz (SPD) and Federal Minister of Economics Peter Altmaier (CDU) decided that the federal government would take a 25 percent stake in Lufthansa.

The state also plans to provide the airline with additional capital. According to “Spiegel”, the participation should thus amount to nine billion euros. In return, the federal government receives two seats on the Lufthansa Supervisory Board.

In the evening, it was said that negotiations on state aid for Lufthansa have not yet ended, according to the Federal Government. “The talks are well advanced, but have not yet been concluded,” said a government spokesman for the German Press Agency.

Government long disagreed about having a say in Lufthansa

The deal was open for a long time as there was no agreement on the terms in the grand coalition. The future right of the federal government to have a say at Lufthansa was a major issue. While the Union’s economic wing, as well as Transport Minister Scheuer (CDU) and Bavaria’s Prime Minister Markus Sƶder (CSU) called for silent participation without seats on the Supervisory Board, the SPD and Finance Minister Olaf Scholz pushed for more participation. According to “Spiegel”, it should also deal with personnel issues and ecological measures by the airline.

However, Lufthansa shareholders would still have to approve the state’s entry at an extraordinary general meeting.

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