18.09.2024 | Administrative Court of Cologne
The limitation of the Corona Bridging Aid III Plus and Corona Bridging Aid IV funding programs to 54.5 million euros per applicant is legal. This was decided by the Cologne Administrative Court.
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In its ruling of September 13, 2024 (case no. 16 K 5228/22), the court dismissed a lawsuit brought against the state of North Rhine-Westphalia by a financial holding company, which also includes the Dorint Hotel Group. The plaintiff asserted a claim to higher grants.
In particular, it argued that larger companies were disadvantaged by these upper limits in a way that was unfair to the public. Smaller companies were usually able to cover 80 to 90 percent of their running costs through the bridging aid. Larger companies such as the plaintiff, whose losses were significantly higher than the upper limits provided for, were only compensated to a much lesser extent. This distorts competition. Since the plaintiff’s losses were due to state intervention, they should also be borne by the general public.
Mainly securing the livelihood of SMEs
The court did not agree with this. The upper limits of the funding programs would indeed lead to a disadvantage for larger companies. However, this disadvantage was objectively justified. It was legitimate that unlimited funding was not made possible in view of the limited state funding options. In view of the objective of the bridging aid, which is to secure the existence of small and medium-sized companies in particular, funding of up to 54.5 million euros is usually sufficient.
Alternative tools for larger companies
For larger companies, alternative aid in the form of guarantees and subsidized loans would also have been available. Due to their higher performance, larger companies can be expected to bear greater burdens even during the pandemic and, if necessary, to obtain additional funds on the credit and capital markets. The state is not obliged to fully compensate for all pandemic-related losses.
(VG Cologne / STB Web)
