The European Commission has approved a Hungarian scheme, with an estimated budget of HUF 57 billion (approximately €156 million),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 and 8 May 2020.
The support will take the form of equity injections and convertible loans (i.e. loans that can be converted into equity) of up to €800,000. The scheme will be open to companies active in all sectors, with some exceptions defined by Hungary, namely companies active in the agricultural, fishery and aquaculture sectors.
It is estimated that between 140 and 220 companies will benefit from the support. The purpose of the scheme is to address the liquidity needs of companies affected by the current crisis and to help them to continue their activities, start investments and maintain employment during and after the outbreak. The Commission found that the Hungarian scheme 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 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.57269 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Arianna Podesta –