BERLIN, May 2. (Aljazeera) - Germany accounts for more than half of the emergency Coronavirus state aid approved by the European Union's executive arm, prompting concerns that countries with the deepest pockets might be getting an unfair advantage in the bloc's single market.
Ensuring a competitive level playing field within its cherished single market of some 450 million people is a central EU tenet - and has long been a key condition for opening up to foreign players from China to, more recently, Brexit Britain.
But the executive European Commission suspended the normally strict state aid restrictions in mid-March, allowing the 27 EU states to pump cash into their economies and companies battered by Coronavirus, with more than 1.9 trillion euros (US$ 2.1 trillion) worth of national schemes approved so far. It is not an even game, however, as richer or less indebted states have more scope to channel funds. While Germany makes up about a quarter of the EU's gross domestic product (GDP), it accounts for some 52 percent of the total value of the emergency coronavirus state aid cleared so far, European Commission data shows. France and Italy share second place, each with 17 percent of the total, and the commission plans to maintain its hands-off approach until at least the end of 2020.
"There is clearly a risk of a breakdown of ... the internal market in Europe," a senior Spanish government official said. "Not all the countries of the internal market have access to this liquidity," said the official. "Germany has deep pockets and can afford it."
Germany granted a three-billion euro (US$ 3.33bn) government-backed loan to sports retailer Adidas and a 1.8 billion euro (US$ 2bn) loan commitment to holiday operator TUI - and is in talks with Lufthansa on a nine billion euro (US$ 10bn) rescue package, among others.
"The state aid that some European countries are discussing with airlines risks distorting competition and creating benefits for some when the sector restarts," said Carlo Amati of Italian flight attendants' union ANPAV.
"The market shares that existed before Covid-19 should be defended."
Announcing plans to cut 3,000 jobs on Friday, Ryanair's Chief Executive Michael O'Leary said he would challenge in European courts what he described as more than 30 billion euros in state aid to flag carrier rivals of his Irish budget airline.