State aid: Commission approves €63.2 million modification of Hungarian scheme to support self-employed individuals in context of coronavirus outbreak

The European Commission has found a €63.2 million (HUF 22.7 billion) modification of the Hungarian aid scheme for the protection of the economy (case SA.59477, as amended by cases SA.60367, SA.61329, SA.61842 and SA.62268) to be in line with EU State aid rules. The measure was approved by the Commission under the State aid Temporary Framework. By this modification, Hungary introduced a new measure to the existing scheme aiming at supporting self-employed individuals (with no further employees) who have been severely affected by the coronavirus outbreak. This measure will provide a direct grant equal to the Hungarian minimum wage (approximately €610 or HUF 219,000) and will cover a period of three months (May to July 2021), during which the self-employed persons are required to maintain their business active. The Commission found that this modification is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed 80% of the individuals’ monthly income; and (ii) can be granted until 31 December 2021 at the latest. The Commission concluded that this modification 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 new measure under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.62913 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.