German airline Lufthansa will receive €9 billion in state aid after lengthy negotiations concluded within Germany’s grand coalition, according to media reports. In exchange, the government will take over 20% of the company’s shares and appoint two members to the company’s supervisory board.
While the Social Democrats (SPD) wanted far-reaching rights and involvement in the company’s board, the Bavarian Christian Social Union (CSU) called for as little intervention into the company’s governance as possible.
The resulting agreement is something that apparently both sides can live with.
Although the government’s 20% share in stocks is below the original plan of 25%, the two board seats are to be filed “in coordination with the federal government.”