The German Government is required by the European Commission ("Commission") to seek repayment of €5.2 million in aid from the bicycle group, Biria. The aid comprised two guarantees and “silent participation” (investor received remuneration but no shares) by a public investment company and the German Land of Saxony to subsidiaries within the Biria group. Although Germany argued that the “silent participation” was provided upon market conditions, the Commission did not accept that it met the private market investor test. Moreover, the Commission was critical of the fact that the guarantees were granted to assist two subsidiaries to restructure their financial position at a time when private banks were withdrawing their support. The Commission took the view therefore that this was effectively restructuring aid and that it did not meet the guidelines for approval for such aid.
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