State aid:EU Commission approves €16.6 billion Polish repayable advance scheme to support companies affected by the coronavirus outbreak

The European Commission has approved a Polish scheme in the form of repayable advances, with a total budget of €16.6 billion(approximately PLN 75 billion), to support the Polish 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 open to micro companies (excluding self-employed workers) and small and medium-sized enterprises (SMEs) facing economic difficulties and liquidity shortages due to the coronavirus outbreak.

The scheme aims at providing businesses that are particularly affected by the coronavirus outbreak with sufficient liquidity to cover their immediate working capital and investment needs, enabling them to continue their activities, make investments and maintain employment during and after the outbreak.

The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. The Commission concluded that the Polish 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: “With an overall budget of €16.6 billion, this scheme will enable Poland to support micro and small and medium-sized companies in addressing their immediate liquidity needs, alleviating their financial burden due to the coronavirus outbreak.

The measure is expected to help 376 000 companies minimise the economic losses and maintain their activities during and after the outbreak. We work closely with Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”

Arianna Podesta –