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Investments and Guarantees of the Free State of Saxony


The state influences the economy in various ways by defining specific legal framework conditions, like taxes, insurances, environmental regulations and more. The state furthermore also acts as an entrepreneureal entity, or becomes stakeholder in other companies. The State Ministry for Finance actively supports these state interests, e.g. as a stakeholder of Sachsen Finanz Group, the Sächsische Aufbaubank - Förderbank (SAB), the airports of Dresden and Leipzig, traditional companies like the porcellan factory Staatliche Porzellanmanufaktur Meissen, and the Saxon steamboat operations (Sächsische Dampfschifffahrt), as well as manufacturing facilities like Zentrum Mikroelektronik Dresden AG.

According to the Budget Order of the Free State of Saxony, business involvement of the state is permitted only for the fulfillment of important state interests. Objective, reason, or benefit of the investments must therefore be focused on public benefit, i.e. on the interest and endeavours of the Saxon citizens. A company, whose sole or main objective is financial gain, would therefore be incompatible. The Free State of Saxony therefore does not invest in order to open up a field of economic activity in an entrepreneureal role. Its investments are instead a design tool for the implementation of economic, structural, location and job market-specific objectives.

All investments of the Free State of Saxony are repeatedly revisited to ensure that state involvement in that company is indeed still a necessity. In the interest of better implementation of state objectives, it may, however, remain a necessity for the Free State of Saxony to continue existing or forge new stakeholdings in local businesses - specifically in view of ever increasing competition and globalisation.
The Saxon State Ministry of Finance generally issues an investment report once a year. This report provides an overview of the development of the associated companies and the stakeholder policy of the Free State of Saxony, and is therefore an important and compact source of information for interested members of the public. The investment report maps out the involvement of the Free State of Saxony transparently, provides company performance figures, reflects the corporate relationships of the businesses and names the individual members of the organisations.


The Free State of Saxony offers support for industry, free trade, and agriculture and forestry with state guarantees for bank loans and equity loans. The state supports promising projects where customary bank collateral and the necessary equity for external investment are lacking.

As part of the authorisation by the Budget Law the Free State takes on guarantees and other financial obligations for economically viable projects for implementation in Saxony. The requirements for a state guarantee are defined for the most part in the Guarantee Guidelines of the Free State of Saxony and the guarantee guidelines issued for federal and state programs.

Guarantee programs in the Free State differ according to those, in which a federal and state guarantee is provided in tandem and those, in which the Free State is sole guarantor.
As a rule, the subsidiarity principle is applied, i.e. a tandem federal and state guarantee supercedes a solely state-based guarantee.

Guarantees must be requested via a financial institution (own bank). The bank will then forward the application - depending on the requested guarantee amount - to the relevant guarantee mandatary.



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