….to support the economy in the coronavirus outbreak
The European Commission has approved a HUF 54 billion (approximately €155 million) “umbrella” scheme to support companies affected by the coronavirus outbreak. The “umbrella” scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020.
The measure will allow the Hungarian authorities to grant aid under certain existing schemes in the form of direct grants to cover investments by companies aiming at preserving jobs or creating new job opportunities. The aim of the “umbrella” scheme is to help companies address the liquidity shortages they are facing as a result of the coronavirus outbreak.
The Commission found that the Hungarian measure is in line with the conditions set out in the Temporary Framework. In particular: (i) the aid will not exceed €100,000 per company active in the primary production of agricultural products, €120,000 per company active in the fishery and aquaculture sector, and €800,000 per company active in other sectors as provided by the Temporary Framework and (ii) the support can be granted until 31 December 2020.
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.57468 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Arianna Podesta – Giulia Astuti –