Now it’s finally happening: The Free State of Bavaria is subsidizing the Bavarian air taxi company Lilium with 50 million euros, provided the federal government contributes the same amount. The cabinet unanimously followed a “key industrial policy decision” by Prime Minister Markus Söder (CSU), as his head of state chancellery Florian Herrmann (CSU) said on Tuesday. There also seem to have been doubts about this decision within the governing coalition beforehand.
Just a few days ago, CSU parliamentary group leader Klaus Holetschek criticized the responsible economics minister, Hubert Aiwanger (Free Voters), and accused him of a lack of commitment. The background to this were reports that the Oberpfaffenhofen-based company was considering moving to France. It had previously hoped in vain for a 100 million euro financial injection from the federal and state governments. This is what it is now set to receive.
If the case sounds familiar: Just this spring, a failed financial aid package for the Baden-Württemberg air taxi company Volocopter caused a real row within the Bavarian government coalition. Prime Minister Söder wanted a 50 million euro guarantee to support the company’s expansion plans, which were to move entirely to Bavaria. His economics minister Aiwanger rejected this as too risky and pointed out that the state of Baden-Württemberg had already shied away. The CSU criticized Aiwanger for being too hesitant, Söder was not amused – but Aiwanger stood firm.
Clash between CSU and Free Voters
This time things went differently, and Herrmann did not want to talk publicly about the reasons. This also affects the internal affairs of two companies, said the head of the state chancellery. “There were different decisions in different cases.” For the taxpayer, however, it could be interesting to see when Freisaat helps companies. After all, things can go wrong.
Only recently, in response to a query from Green Party politician Ludwig Hartmann, the Ministry of Finance admitted that almost 200 million euros, for which the Free State had guaranteed, are at stake following the bankruptcy of the tourism company FTI. The loan was intended to support the travel group during the Corona crisis.
Lilium, on the other hand, is seen as a bet on the future. The pioneering company in the south of Munich wants to go up with a fully electric, vertically take-off and landing flying taxi, with the first machines to be delivered to customers in 2026. But that will cost a lot of money. “It’s about supporting a company that has grown here so that it can make the leap,” says Science Minister Markus Blume (CSU). He had already been one of the proponents of state aid for Volocopter and at the time accused Aiwanger of being slow to act.
That’s why there is money for Lilium
But this time the head of the Free Voters is on board. The 850 jobs that Lilium already offers in Oberpfaffenhofen are a strong argument for the Minister of Economic Affairs. Added to this is the risk of people moving away. In addition, according to the Ministry of Economic Affairs, Lilium’s success would strengthen the aerospace industry – and state involvement would strengthen the confidence of private investors. The last two points mentioned could also have been cited in the case of Volocopter. According to consistent media reports, Lilium’s competitor is still looking for financiers.
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