The Dutch shipbuilder Damen will be supported by the Dutch government with an amount of 270 million euros. The cabinet received the green light for this from the House of Representatives on Thursday, after the Senate had already agreed earlier.
The support is needed because Damen is experiencing problems with the construction of six ships for the German navy. Employees are struggling with the software they use during construction, which has caused delays.
Due to this delay, German payments are not being made, which is leading to financial problems for the company, newspaper NRC previously reported. Billions of euros are involved in the order.
To prevent bigger problems, the Dutch government is now stepping in to help. It concerns a bridging loan of 270 million euros. Many details about the support have not been disclosed.
The House of Representatives was actually already in recess, but came back specifically for a vote on the state aid. A large majority of the parliamentarians agreed with the cabinet plans. However, the SP had reservations. For example, group chairman Jimmy Dijk was annoyed by the fact that no debate about the support was possible.
State aid for companies is rare
It does not happen very often that politics financially supports a company. It is possible that in this case it plays a role that Damen is also the main supplier for the Dutch navy. For example, several ships have recently been ordered. In addition, the defense sector now has the political wind in its sails, because in the Netherlands and the rest of Europe there is more attention for its own armed forces.
This is partly due to the war between Russia and Ukraine. In addition, US President Donald Trump threatens to dismantle the security guarantees that the US has given to Europe in recent decades. That is why many governments are investing extra in defense in the coming years and prefer to spend that money in their own country.
A striking detail is that Damen is currently being pursued by the Public Prosecution Service (OM). The OM suspects the shipbuilder of corruption and circumventing sanctions against Russia. Some former board chairmen are also being investigated.