The European Commission approved a Swedish rent rebate scheme of up to SEK 5 billion (approximately €453 million) in support of tenants operating in the sectors for hotels, restaurants, retail and certain other activities.
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 is designed for tenants in the hotel, restaurants, retail and several other sectors that saw their revenues heavily decreasing or even disappearing due to the coronavirus outbreak.
The rent rebate scheme aims at weathering the sudden decrease in income that tenants face due to the measures to slow down the spread of the epidemic, such as travel restrictions, social distancing recommendations, and others, and at preserving the continuity of economic activity during and after the coronavirus outbreak.
The Commission found that the scheme is in line with the conditions set out in the Temporary Framework. The Commission therefore 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.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The entire EU economy is experiencing a serious disturbance due to the coronavirus outbreak. Hotels, restaurants, retail and other related sectors are very hard hit.
The €453 million Swedish scheme that we approved will help these sectors pay their rent during these difficult times. We will continue to work in close cooperation with Member States to tackle the economic effects of the outbreak”. The full press release is available online.
Arianna Podesta – Giulia Astuti –