The European Commission has approved Austrian guarantee schemes to support Austrian small and medium-sized enterprises (SMEs) in the context of the coronavirus outbreak. The schemes were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.
The schemes will provide guarantees on working capital loans that will enable those SMEs to cover their short-term liabilities, despite the current loss of revenues caused by the pandemic. The schemes complement the €15 billion Austrian liquidity scheme that the Commission approved on 8 April 2020.
The Commission found that the schemes are in line with the conditions set out in the Temporary Framework. The Commission concluded that the Austrian measures are 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.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “These Austrian schemes will provide guarantees for underlying loans up to an amount of €500,000.
They will enable Austria to support businesses to cover their short-term liabilities despite the current loss of revenues caused by the coronavirus outbreak through guarantees on working capital loans. We continue to work closely with all Member States to find solutions to fight the pandemic, in line with EU rules.”
Arianna Podesta –