German Chancellor Olaf Scholz is set to announce a significant state intervention to rescue the Meyer Werft shipyard in Papenburg, which is facing a severe financial crisis.

The shipyard, known for its luxury cruise ships, has been struggling due to the pandemic's impact on cruise tourism and rising energy and raw material costs.

The government plans to inject 400 million euros in equity and provide guarantees for loans to cover a 2.8 billion euro financing gap.

This move aims to secure the jobs of over 3,000 employees and stabilize the shipyard's operations.

The rescue plan involves a temporary state participation, with both the federal government and the state of Lower Saxony contributing.

The final details are still under negotiation, and approval from the EU Commission is required.