Germany Approves the Bailout of Meyer Werft
Earlier this week, we reported that the German federal government and the state of Lower Saxony had agreed to bail out Meyer Werft.
The world-renowned shipbuilder is perhaps best known for having constructed numerous vessels for the Disney Cruise Line, including the Disney Dream, Disney Fantasy, and Disney Wish. Additionally, the shipyard in Papenburg, Germany, is finishing work on the upcoming Disney Treasure and Disney Dream.
Despite recently signing a new contract to construct four additional ships for Disney, Meyer Werft has been in dire financial straits.
Photo: Disney
Since the cruise line industry was decimated by the COVID-19 pandemic, Meyer Werft has struggled to recover.
The German Federal Government Steps In
With the historic shipbuilder on the verge of bankruptcy, the German federal government and the state of Lower Saxony have agreed to intervene.
Today, the German federal budget committee approved a plan to purchase a 40% stake in Meyer Werft from the federal government for €200m.
Additionally, Lower Saxony will match the purchase, contributing another €200m. In total, the government will own 80.7% of Meyer Werft.
Photo: Thomas Mazloum on LinkedIn
Finally, the federal government and Lower Saxony will guarantee the shipbuilder’s loans of €1 billion each. That means the government will step in should Meyer Werft be unable to pay back its loans.
Why Save Meyer Werft?
According to Euronews, the German government is assisting Meyer Werft for military reasons. The shipyards could prove important should Germany need to invest in its navy.
By saving the shipyards, the German government will also save 3,000 jobs.
Photo; DCL
While the government bailout of Meyer Werft is intended to be a temporary fix, the deal did not include a set exit date.
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