State aid: Commission approves €5.3 million Estonian scheme to support film producers and distributors and cinemas in the context of the coronavirus outbreak

The European Commission has approved an Estonian scheme to support film producers and distributors, as well as cinemas affected by the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. Under the scheme, support will take the form of direct grants of up to €700,000 per beneficiary. The aim of the scheme is to help film production and film distribution companies as well as cinemas address the liquidity shortages they face due to the coronavirus outbreak and the restrictions that Estonia had to impose to limit the spread of coronavirus. The Commission found that the Estonian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the support will not exceed the limits per beneficiary provided by the Temporary Framework, and (ii) the support will be granted no later than 31 December 2021. 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 measure under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.62801 in the State aid register on the Commission’s competition website, once any confidentiality issues have been resolved.