The European Commission has approved a €30 million Luxembourg aid scheme to support investments by companies affected by 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. Under the scheme, the support will take the form of direct grants.
The scheme will be accessible to companies of all sizes active in all sectors, with some exceptions defined by Luxembourg, namely companies active in the financial sector, in the fishery and aquaculture sectors and in the primary production of agricultural products. The objective of the scheme is to enable companies experiencing a decrease in liquidity due to the coronavirus outbreak to undertake investments that they would not otherwise undertake due to the current crisis.
The Commission found that the Luxembourg scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per company, and (ii) the scheme will be applicable 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 measures under EU State aid rules. More information on the Temporary Framework and other action the Commission has taken 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.57305 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Arianna Podesta –