June 17, 2020 | A message from Sascha Leske, Head of NY Office of Noerr
In light of the continuing reopening in Germany and across Europe, my Noerr colleagues and I would like to highlight a few important measures that the respective governments are implementing. Key elements that may be of particular interest include the specific measures aimed at enhancing investments in core industry sectors; and the financial support that subsidiaries of U.S. companies in Germany and across Europe may be entitled to receive, given the economic stimulus efforts.
- German Government agrees on € 130 billion economic stimulus package – intended measures include inter alia:
- interim aid of up to € 25 billion for small and medium businesses
- funding for research and development of e-mobility, hydrogen technology as well as infrastructure for mobile communications and fiber-optic broadband expansion
- enhancement of public procurements
- simplification of the legal framework for companies’ employee participation programs (in particular, considering the needs of start-ups)
- several tax measures, such as the reduction of sales tax (VAT), extension of tax loss carryback options and new amortization possibilities for reducing the tax burden (with regard to key tax measures in the stimulus package, please see our related news article)
- A specific COVID-19 Tax Act was passed by the German Government, which inter alia extends the general tax retroactive period for reorganizations from eight to twelve months (please see our related news article).
- German Government publishes further key aspects of the € 2 billion assistance package for start-ups (please see our related news article).
- European Commission sets State aid framework for public recapitalizations and subordinated debt following the temporary framework adopted in March, which already included:
- direct grants
- tax advantages
- state guarantees
- support for coronavirus-related research and development as well as for specific products and facilities
- wage subsidies for employees
- for additional information, please see our related news article
- German Government adopts German Antitrust Law Act to mitigate COVID-19 pandemic consequences: extension of investigation periods and suspension of obligations to pay interest if immediate payment of a fine is unreasonable in view of the economic situation of a Company (please see our related news article).
Compliments of Noerr LLP – a member of the EACCNY.