The European Commission has approved a €70.8 million Latvian scheme to support companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support will take the form of direct grants amounting to 30% of the beneficiary’s gross wages and salaries over the months of August, September and October 2020. The scheme will be open to companies active in all sectors, excluding primary producers of agricultural products, public companies and financial institutions. To be eligible, companies must have suffered (i) a decrease in turnover of at least 20% in November 2020 or December 2020, compared to the average turnover of the months of August, September and October 2020; as well as (ii) a decrease in turnover of at least 30% compared to the turnover of November or December 2019 respectively. The aim of the measure is to help beneficiaries counter the decrease in working capital in the context of the second wave of the coronavirus. The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Framework. In particular: (i) the aid will not exceed the €120,000 for companies active in the fisheries and aquaculture sector and €800,000 for companies active in all other sectors; and (ii) the aid will be granted before 30 June 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. 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.59592 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
EU Institutions News
State aid: Commission approves €246 million Dutch scheme to support renewable hydrogen production
Jul 28, 23
EU Institutions News
Speech by Executive Vice-President Dombrovskis at the ECB conference on central, eastern and south-eastern European countries
Jul 17, 23