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State aid: EU Commission approves €140 million Hungarian scheme to support economy in coronavirus outbreak

The European Commission has approved a HUF 50 000 million (approximately €140 million) Hungarian aid scheme to support the Hungarian economy in the context of the coronavirus outbreak.

The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. The scheme will be managed by the competent agency, Hungarian Investment Promotion Agency Non-Profit Ltd (HIPA Non-Profit Ltd).

The public support, which will take the form of direct grants, will be accessible to medium and large enterprises, which are particularly hit by the economic consequences of the coronavirus outbreak. The scheme will help businesses to cover their immediate working capital or investment needs. The Commission found that the measure is in line with the conditions set out in the Temporary Framework.

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.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €140 million Hungarian scheme will support businesses which are particularly hit by the coronavirus outbreak.

It aims at mitigating the economic impact of the coronavirus outbreak and will help businesses continue implementing essential investments. We continue working with Member States to ensure timely, coordinated and effective action in line with EU rules.”

Arianna Podesta – Giulia Astuti – Maria Tsoni –