State aid: Commission approves modified €100 million Hungarian scheme to support companies affected by coronavirus outbreak

The European Commission has found the modification of a previously approved Hungarian scheme to support the Hungarian economy in the context of the coronavirus outbreak to be in line with EU State aid rules, in particular with the State aid Temporary Framework. The existing scheme was approved on 20 May 2020 under case number SA.57285 and amended on 28 July 2020 under case number SA.58065. Hungary notified the following main modifications to this scheme: (i) the extension of the measure to an additional loan programme called the “Széchenyi Tourism Card”, that will be accessible to small and medium-sized enterprises (SMEs) active mainly in the tourism sector and will take the form of an overdraft facility; and (ii) an increase in the total budget of the scheme, from HUF 21 billion (approximately €60 million) to HUF 34 billion (approximately €100 million). It is estimated that in total up to 10,000 companies will benefit from the amended scheme. The Commission concluded that the scheme, as modified, remains 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.58288 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.