State aid: Commission approves €1.5 million Estonian scheme to support companies in the food processing sector affected by coronavirus outbreak

The European Commission has approved a €1.5 million Estonian scheme to support the food processing sector in the context of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support, which will take the form of direct grants, will be open to micro, small and medium-sized companies active in the food processing sector. The purpose of the scheme is to help the beneficiaries address their liquidity needs and to help them continue their activities during and after the coronavirus outbreak. The Commission found that the scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid does not exceed €800,000 per company as provided by the Temporary Framework. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58678 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.